31.07.201817:48 Forex Analysis & Reviews: Wave analysis of GBP / USD for July 31. The pound is preparing for a new fall

Analysis of wave counting:

During the trades on July 30, the GBP / USD currency pair added about 15 percentage points. As before, the pair stays within the downward corridor, keeping the probability of the downward trend segment becoming more complicated, which is now regarded as wave 3, a. The reduction of quotes at a minimum from July 19 will confirm the readiness of the pair to complicate the downward part of the trend. When this option is implemented, the trend section, which takes its start on June 14, will acquire a more complex form. The break of the upper generatrix of the downward corridor of the line will indicate the willingness of the instrument to complete the descending section of the trend and proceed to the construction of the ascending one.

The objectives for the option with purchases:

1.3301 - 161.8% of Fibonacci (the oldest Fibonacci grid)

The objectives for the option with sales:

1.2962 - 200.0% of Fibonacci

1.2809 - 261.8% of Fibonacci

General conclusions and trading recommendations:

The GBP / USD currency pair is still in the context of constructing a downward set of waves. Although wave 3, a, can be completed, and there are no compelling reasons to assume its complication now. Thus, I recommend now either to stay out of the market until the wave pattern is clear, or to sell the pair near the upper line of the narrowing corridor with targets located near the calculated mark of 1.2962, which corresponds to 200.0% of Fibonacci. To buy a pair, I recommend going back above the downward corridor.