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24.09.201811:38 Forex Analysis & Reviews: Wave analysis of GBP / USD for September 24. The pound hit down with news from the EU

Long-term review

Exchange Rates 24.09.2018 analysis

Analysis of wave counting:

During the trades on September 21, the GBP / USD currency pair lost about 200 percentage points after an unsuccessful attempt to break through the level of 161.8% on the senior Fibonacci grid. Thus, the construction of a downward wave began, presumably 4. An unsuccessful attempt to break through the 50.0% Fibonacci level constructed by wave 3 will lead to the completion of wave 4. Significant importance now has a news background, since not the least role in the fall of the pound was played the EU summit, during which the EU and Britain could not advance in the negotiations, as later announced by Prime Minister Theresa May.

The objectives for the option with purchases:

1.3301 - 161.8% of Fibonacci (the senior grid)

The objectives for the option with sales:

1.3041 - 50.0% of Fibonacci

1,2982 - 61.8% of Fibonacci retracement

General conclusions and trading recommendations:

The GBP / USD currency pair supposedly completed the construction of wave 3. Wave 4 can also be completed if it takes a shortened view in the temporal sense of the word. However, it would be more logical to see a retracement from the level of 50.0% in Fibonacci, or from 61.8%. Such a retreat will be a signal of the readiness of the instrument to resume the construction of the upward trend section. In the implementation of this option, I recommend that you resume the pair purchases.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

Chin Zhao,
Analytical expert
InstaForex Group © 2007-2021
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