Analysis of wave counting:

Yesterday, the testing the level of the 40th figure provoked the price rebound on the GBP / USD pair by more than 180 percentage points from the minimum reached at the beginning of the European session (1.3980). The resulting wave situation allows us to assume that the currency pair still remained in the formation stage of wave a, 4th, 5th, a, B, C, C, (A). If this is the case, then in the process of the development of the internal wave structure of this 4th wave, 5th, a, B, C, C, (A), the currency pair may continue to decline quotations in the direction of the 39th, or the 38th figure.

The objectives for building a downward wave:

1.3946 - 38.2% of Fibonacci

1.3823 - 50.0% of Fibonacci

The objectives for building an upward wave:

1.4294 - 685.4% of Fibonacci

1.4400

General conclusions and trading recommendations:

The construction of the upward trend section continues, but the entire wave counting of the instrument is not entirely unambiguous now. Wave 3, 5, a, B, C, C, (A), supposedly completed its construction near the mark of 1.4294, which equates to 685.4% of Fibonacci. Within the framework of the corrective wave 4, the decline started and may continue to decline with targets near the estimated levels of 1.3946 and 1.3823, which is equivalent to 38.2 and 50.0% of Fibonacci.