16.10.201816:07 Forex Analysis & Reviews: Wave analysis of GBP / USD for October 16. Wave counting maintains its integrity before the EU Summit

Wave counting analysis:

During the trading on October 15, the GBP / USD currency pair gained about 60 base points from the low of the day. Thus, there are grounds for assuming the completion of the construction of a correctional wave 2, in the future wave 5. If this is true, then the increase in quotations will continue at least to the level of 100.0% Fibonacci. Of great importance will be the outcome of negotiations between the EU and the UK, which should take place at the EU summit on October 17-18. The results of negotiations can greatly affect the current wave counting, up to its refinement.

The objectives for the option with purchases:

1.3295 - 100.0% of Fibonacci

1.3397 - 127.2% of Fibonacci

The objectives for the option with sales:

1.2922 - 0.0% of Fibonacci

General conclusions and trading recommendations:

The GBP / USD currency pair continues to build the estimated wave 5. Thus, now I recommend buying a pair with targets located near the estimated levels of 1.3295 and 1.3397, which corresponds to 100.0% and 127.2% of Fibonacci. There are no grounds for sales, especially fundamental ones. However, they may appear when the results of the final stage of negotiations between the European Union and the United Kingdom under the terms of Brexit become known.