Wave analysis of GBP / USD for October 19. The pair can go far down
Wave counting analysis:
During the trading on October 18, the GBP / USD currency pair lost another 90 basis points more and, thus, continues to build the expected wave 2, in the future 5. However, the news background after the completion of the Brexit negotiations is clearly not in favor of the British pound sterling, so the decline may continue, which may lead to the need to clarify the current wave marking. However, while the working version, involving the construction of an upward wave 3, is preserved. An unsuccessful attempt to break through the 76.4% of Fibonacci level can lead to the completion of wave 2 construction.
The objectives for the option with purchases:
1.3258 – 0.0% according to Fibonacci
1.3300 – 161.8% of Fibonacci
The objectives for the option with sales:
1.3003 – 76.4% of Fibonacci
1.2924 – 100.0% of Fibonacci
General conclusions and trading recommendations:
The currency pair GBP / USD continues to build the estimated wave 2. Thus, I recommend keeping sales open with targets near the marks of 1.3003 and 1.2924. Information from the EU summit does not support the pound, so the decline can continue. For purchases, you need an eloquent signal to complete the construction of wave 2.