Wave counting analysis:
On February 12, the GBP/USD pair gained about 30 bp, which completed the construction of the 1st downward wave or a. If this assumption is true, the construction of wave 2 or b will now continue, which should take a three-wave view with targets located near the calculated mark of 50.0% on the small Fibonacci grid. After completing the construction of the correctional wave, I expect the resumption of the decline of the instrument within the 3rd wave. The news background is still on the dollar side since the situation with Brexit is not clear and cannot be solved. There is no positive news from the UK.
Purchase targets:
1.3216 - 0.0% Fibonacci (formal goal)
Sales targets:
1.2827 - 50.0% Fibonacci
1.2734 - 61.8% Fibonacci
General conclusions and trading recommendations:
The wave pattern assumes the completion of the first wave formation on the downward trend section and the construction of the 2nd correctional wave or b. Hence, I recommend waiting for the end of construction of this wave and then resell the pair based on the development of the 3rd wave of the downward trend.