Wave analysis of GBP / USD for August 14. The pound sterling can still continue falling
Analysis of wave counting:
During the trades on August 13, the GBP / USD currency pair increased by approximately 20 percentage points. Such a slight increase in the pair does not give grounds for assuming the completion of the construction of wave 5, 3, a. If this assumption is correct, then the decline in quotations, after a short break, will resume with targets near the level of 261.8% on the senior Fibonacci grid. In general, if the current wave counting is not complicated, then wave 5 is nearing completion. Thus, I do not recommend increasing the sales of the pair. However, a favorable news background may help the dollar continue to grow in tandem with the British pound.
The objectives for the option with purchases:
1.3301 – 161.8% of Fibonacci (the oldest Fibonacci grid)
The objectives for the option with sales:
1.2758 – 261.8% of Fibonacci
1.2636 – 261.8% of Fibonacci (the oldest Fibonacci grid)
General conclusions and trading recommendations:
The GBP / USD currency pair remains in the framework of the construction of the downward trend section. Today, I recommend that you continue to remain in sales, or even gradually reduce sales, in anticipation of a breakthrough mark of 1.2758, which corresponds to 261.8% of Fibonacci, with targets located near the estimated mark of 1.2636. However, I recommend not to increase sales, since wave 5, if not complicated, may end in the coming days.