Wave marking analysis:
The breakdown of the level 1.5600 by the GBP/USD pair confirmed yesterday the formation of the 5-wave structure on ascending part of the trend initiated on January 13. Therefore, the current uprising correction is expected to be complicated and continuous. The first targets for the whole ascending part of the trend of the supposed wave A are located near the level 1.5675. If that is true, then having reached the mentioned target level and considering the MACD decisive divergence it will be possible to expect the decline in prices within the prospective wave B.
Targets for the variant with the uprising wave A:
1,5619 – 88.6% according to Fibonacci
1,5675 – 161.8% according to Fibonacci
Targets for the variant with the wave B:
1,5566 – 76.4% according to Fibonacci
1,5503 – 61.8% according to Fibonacci
General conclusions and trading recommendations:
With GBP deals we observed the formation of the ascending corrective part of the trend, probably within the wave A, inside of which the 5-wave structure was formed. The MACD divergence points at possible small decrease in prices and can coincide right with the completion of the wave A. If that proves to be true, then the wave B is likely to form and we can expect the decrease in prices to the levels 1.5566 and 1.5503. It is possible that the developing wave A will raise the pair to the level 1.5619 which is equal to 88.6% according to Fibonacci and further to the level 1.5675 corresponding to 161. 8% of Fibonacci.
