FX.co ★ Wave analysis of the GBP / USD currency pair for December 27, 2017

Analysis of wave counting:

As expected, the GBP/USD pair did not show any noticeable activity in the course of yesterday's trading, as it traded within a fairly narrow price range the whole day, with a maximum amplitude of a price change of about 40 percentage points. At the same time, it seems that the currency pair confirms the formation of wave b, in b, in c and in the 4th, which appeared in an extended horizontal correction in time. If this is the case, the currency pair will most likely remain within the limits of the corridor, limited by the levels of the 33rd and 34th figures.

Objectives for building a downward wave:

1.3291 - 23.6% Fibonacci retracement

1.3200

Goals for building an upward wave:

1.3480 - 11.4% Fibonacci retracement

1.3600

General conclusions and trading recommendations:

The construction of the downward wave 4 in the upward trend section continues. It is now possible to move in the side channel between 33 and 34 figures within the wave b, in b, in c, and in 4th, which can significantly complicate its internal wave structure.