Wave analysis:
After a sufficiently dynamic growth observed recently, on Friday GBP/USD slowed down the upward movement. However, it managed to consolidate above the level of figure 62. Meanwhile, if wave structure develops according to scenario, presupposing formation of the next pattern of more complex correction, then despite the potential of the growth to the area 1.6340-1.6350, formation of inner wave structure of the second wave, or b, may finish after test of the level of 1.6240.
Targets for down wave:
The area between figures 62 and 61
Targets for up wave:
1.6239 – 61.8% of Fibonacci
1.6278 – 76.4% of Fibonacci
Summary and trading recommendations:
The British pound continues to make more complex the whole wave structure. In terms of a series of up waves, the instrument may continue the increase of the quotes with targets placed near 1.6239 and 1.6278, which is corresponding to 61.8% and 76.4% of Fibonacci. In terms of building of new down wave, decline with targets placed near figures 62 and 61 may start. Ambiguous wave structure forces us with anxiety to keep any open positions. Probably, the pair has started building of a new upward trend. The upward channel supports the perspectives of building of up wave.
