Wave analysis:
Friday’s trading session did not change the ongoing wave outlook for the pair. It could be considered an up correction in regard to down trend pattern which was formed within June 17 and July 9. Meanwhile, it looks like the Thursday’s high is wave a in terms of more complex 2 or B and decline from the level of figure 52 is unfinished wave b in 2, or B. If it is so, then the pair may resume its growth towards the level of 1.5200.
Targets for down wave (probably 3 or C):
1.4868 – 161.8% of Fibonacci
1.4739 – 200.0% of Fibonacci
Targets for up wave (probably 2 or B):
1.5171 – 38.2% of Fibonacci
1.5281 – 50.0% of Fibonacci
Summary and trading recommendations:
The British pound has finished construction of the first wave of overwhelming down trend pattern. Thus, now building of prospective wave 2 or B with targets placed near 1.5171 and 1.5281, which is corresponding to 38.2% and 50.0% of Fibonacci. If current wave structure is correct, then after the wave 2 or B is completed, drop of the quotes may start with targets placed near the calculated levels of 1.4868 and 1.4739, which is corresponding to 161.8% and 200.0% of Fibonacci in terms of wave 3, or C.
