Wave analysis of GBP / USD pair for August 31. The pair is preparing for a new long fall
Analysis of wave counting:
During the trading session on August 30, the GBP / USD pair lost several points and fulfilled the level of 200.0% on the higher Fibonacci grid. An unsuccessful attempt to break this mark signals the readiness of the instrument to build a new downward wave and according to the current wave counting, it should be a wave of the 5th downward trend section. If this assumption is correct, the decline will start from current rates or after the second test of 200.0%, or 50.0% on a small Fibonacci grid.
Goals for shopping:
1.3068 – 50.0% Fibonacci retracement
1.3164 – 61.8% Fibonacci retracement
Goals for sales:
1.2636 – 261.8% by Fibonacci (the oldest Fibonacci grid)
1.2312 – 423.6% Fibonacci retracement
General conclusions and trading recommendations:
The GBP / USD pair remains within the framework of the 4th wave. Hence, I still recommend preparing the pair for sales and closing purchases. For a more confident opening of sales, recommend waiting for confirmation of the pair’s transition to the construction of a downward 5th wave. Another option is to open small sales volumes in a protective order above the 200.0% Fibonacci level, of which its breakout attempt failed.