Analysis of wave counting:
The attempt to resume the downward movement ended yesterday with failure, and after the break of the May 4 low (1.3485), the price of the GBP / USD pair returned to the opening levels of the day. The current wave situation allows us to assume that the currency pair continued to make attempts to complete wave a and go to the stage of formation of wave b, c, b, B, C, C, (A). At the same time, as noted earlier, the currency pair retained the potential to lower quotations, at least to the level of the 34th figure, and to further complicate the internal wave structure of the entire wave c, b, B, C, C, (A).
The objectives for building a downward wave:
1.3414 - 127.2% of Fibonacci
The objectives for building an upward wave:
1.3900 - 1.400
General conclusions and trading recommendations:
The wave counting assumes the construction of a descending set of waves. The decline in quotes may continue in the wave a, c, b, B, C, C, (A) with targets near the estimated mark of 1.3414, which is equivalent to 127.2% of Fibonacci. Within the framework of the construction of wave b, c, b, B, C, C, (A), the quotations may start to depart from the reached lows with targets located about 39 and 40 figures. An unsuccessful attempt to break the 1.3414 mark may lead to the completion of the downward wave construction.