22.10.201810:39 Forex Analysis & Reviews: Wave analysis of GBP / USD for October 22. The growth of the pound sterling may prevent events in the UK

Wave counting analysis:

During the October 19 trading session, the GBP / USD currency pair gained about 50 basis points. Thus, there are grounds for assuming the completion of wave 2, 5. If this is true, then the quotation increase will continue with targets above 33 figures, within wave 3, 5. The news background can change the market mood more than once. Recently, the political crisis in Britain is gaining momentum. The market is filled with rumors about the possible resignation of Theresa May, plus the situation on Brexit remains unresolved. Thus, the wave pattern may require additions and corrections.

The objectives for the option with purchases:

1.3258 - 0.0% according to Fibonacci

1.3300 - 161.8% of Fibonacci

The objectives for the option with sales:

1,3003 - 76.4% of Fibonacci

1.2924 - 100.0% of Fibonacci

General conclusions and trading recommendations:

The GBP / USD currency pair has presumably completed the construction of wave 2. Thus, I recommend now to buy a pair with targets located near the estimated levels of 1.3258 and 1.3300, which corresponds to 0.0% and 161.8% of Fibonacci, based on building the third wave in the uptrend of the trend. Reasons for a new pair of sales will appear in the case of a successful attempt to break through the minimum of wave 2.