FX.co ★ Wave analysis of the GBP/USD currency pair for December 18, 2017

Analysis of wave counting:

During Friday's European session, the GBP/USD pair began with a fairly dynamically developing downward movement, which allowed it, after losing more than 140 percentage points, to continue at the end of the day to test the level of the 33rd figure. At the same time, despite the breakdown of the lows reached on December 12, it seems that the currency pair remained in the stage of the formation of wave b, in c, in the 4th, which may take the form of a more complex oblique correction structure. If this is the case, then before the beginning of the future wave c, in c, in the 4th, the currency pair may start a pullback from the minimum reached on the last day of last week and return to the marking area of 1.3450-1.3470.

Targets for a downward wave option:

1.3291 - 23.6% by Fibonacci

1,3200

Targets for an upward wave option:

1.3480 - 11.4% by Fibonacci

1.3600

General conclusions and trading recommendations:

The construction of the downward wave 4 in the upward trend section continues. Now it is possible to lift the price of the trading instrument with targets near the target mark of 1.3480, which corresponds to 11.4% of Fibonacci, within the internal wave of b, in c, in 4. After it is completed, it is possible to resume the decline with targets below marks 1.3291, which is equivalent to 23.6% of Fibonacci.