Wave marking analysis:
After the yesterday’s repulse from the level of the figure 59 that took place during the Pacific session, the GBP/USD pair had lost over 100 pips by the end of the day. The inner wave structure of the ascending part of the trend that was formed on Friday does not seem to be very convincing. This enables the Pound to resume the growth to the targets located near the point 1.5930. At the same time, as it has been mentioned before, the 2nd wave (or the wave B) is likely to transform in more complicated corrective structure which, in turn, is expected to acquire the properties of diagonal triangle.
Targets for the variant with the wave 2 or B (in case it is complicated):
1.5662 – 38.2% according to Fibonacci
1.5581 – 50.0% according to Fibonacci
Targets for the variant with the wave 3 or C:
1.5933 – 261.8% according to Fibonacci
General conclusions and trading recommendations:
The formation of the ascending part of the trend within the wave 3 (or wave C) with targets seen at the 1.5933 (equal to 261.8% of Fibonacci) is very likely to resume. The continuous correction is considered as negative factor for the uprising part of the trend. Though it is possible that the ascending part of the trend will turn downwards, the Friday’s movement stimulated the formation of the uprising part of the trend. The renewal of the high of the wave 1 (or wave A) will be confirmed by the formation of the wave 3 (or wave C) indicating the further growth of the pair.
