FX.co ★ Wave analysis of GBP/USD for August 4, 2010

Yesterday, the GBP/USD price managed to rise by another 80 points, having worked out the inner wave dimension of wave 3 in 3 (or C) well enough. In addition, close to yesterday’s high there is a ratio of 1.618 between waves 1 and 3 in 3 (or C). Thus, the existing situation make us be careful at this stage of the pound strengthening, as there is necessity of correctional movement within the future wave 4 in 3 (or C).