FX.co ★ Wave analysis of the GBP/USD currency pair for November 7, 2017

Analysis of wave counting:

In general, as expected, yesterday's GBP/USD trades started from the upward movement and, adding about 110 pp in price, managed to finish at the mark of 1.3170 at the end of the day. Thus, it is possible to assume that the currency pair was in the stage of formation of the 2nd wave, as part of the future c, in the 4th, which, by the close of the American session, took a completely completed form. If this is the case, then practically from the high of the past day, the currency pair will resume the decline of quotes, thereby indicating the beginning of the 3rd wave, in c, in the 4th. At the same time, as it was already noted earlier, there is still a probability of even more complication of the internal wave structure of wave b, in the 4th and return of the price to the upper boundary of the horizontal channel.

Targets for a downward wave option:

1.3065 - 38.2% by Fibonacci

1.2882 - 50.0% by Fibonacci

Targets for an upward wave option:

1.3291 - 23.6% by Fibonacci

1.3400

General conclusions and trading recommendations:

The construction of the downward wave 4 in the upward trend section continues. Now it is possible to reduce quotes with targets near the estimated level of 1.2882, which corresponds to 50.0% of Fibonacci, within wave 3, in c, in 4. Wave b, in 4 supposedly completed its construction.