Wave analysis of GBP / USD for August 6. British pound is preparing to break through July 19 low
Analysis of wave counting:
In the course of trading on August 3, the GBP / USD currency pair lost a few more points and came close to the minimum of the expected wave of 5, 3, a. A successful attempt to break this mark will indicate the readiness of the tool for further reduction and, accordingly, the complication of the descending section of the trend and the entire wave 3. When performing this variant with a breakthrough, all wave counting will require supplementation, and already now, one can say that the probability of execution of this option is quite high. An unsuccessful attempt to break through the mark of 1.2962 may lead to the withdrawal of quotations from the reached lows, and wave counting will not clear up in any way.
The objectives for the option with purchases:
1.3301 – 161.8% of Fibonacci (the oldest Fibonacci grid)
The objectives for the option with sales:
1.2962 – 200.0% of Fibonacci
1.2809 – 261.8% of Fibonacci
General conclusions and trading recommendations:
The GBP / USD currency pair remains within the framework of the construction of a downward trend section, bounded by a downward corridor. Thus, the decline may continue with targets near the level of 1.2962, which is equivalent to 200.0% of Fibonacci. A successful attempt to break this mark will lead to a further decline with targets of 1.2809 and 1.2650. In this case, I recommend that you continue to sell the pair with these goals.