Targets for Up Wave (probably 3):
Wave Analysis:
During Friday’s trading session the GBP/USD pair made several unsuccessful attempts to consolidate above the level of 1.6050. After it the pair reversed 70 basis points from the high. At the same time this failure to develop ascending movement led to the uptrend in the range 28th to 30th November looks like the next series of abc waves. Thus, it seems that the assumed wave 2 starts to resemble a triangle corrective structure.
Targets for Down Wave (probably 2 (if it gets more complex)):
1.5972 – 38.2% of Fibonacci
1.5946 – 50.0% of Fibonacci
Targets for Up Wave (probably 3):
1.6061 and higher – 161.8% of Fibonacci
Summary and Trading Recommendations:
Ambiguity of the British pound and complexity of the wave structure compel us to keep cautiously positions on the market. Target of the assumed up wave is the level of 1.6061 and higher which is corresponding to 161.8% of Fibonacci in terms of up wave (presumably 3) of an uptrend. However, wave 2 (corrective) is building at the moment (or has already finished its building?). If it is so, the drop of the quotes with targets at 1.5972 and 1.5946 which is corresponding to 38.2% and 50.0% of Fibonacci may continue. On the whole, the wave structure may require corrections and specifications at any moment. No channels, Divergence/Convergence have been formed.
