Wave analysis:
Yesterday there were no considerable changes in the GBP/USD wave structure, the pair was trading in the narrow price staying under the level of figure 56. Thus, current situation accepts the possibility of further decline of downward correction towards the lower line of ascending channel passing at the moment near the level of 1,5400. Meanwhile, until the price breaks the low of wave 4 in 5 (1.5420), the possibility that wave 5 in 5 will be more complex in form will be actual.
Targets for down wave:
1.5529 – 76.4% of Fibonacci
1.5392 – 61.8% of Fibonacci
Targets for up wave:
1.5700 – 1.5800
Summary and trading recommendations:
The British pound probably has completed the building of up wave, which is identified as wave 5 of upward trend channel. If the assumption is correct, then the decline of quotes started in terms of new downward trend channel with targets placed near 1.5529 and 1.5392, which is corresponding to 76.4% and 61.8% of Fibonacci. If wave 5 gets more complex, then the increase continues with the targets placed near figures 57 and 58. Upward channel supports the outlook of continuation of uptrend channel, the break of its lower forming line gives us the reason to consider the building of a more complex downward trend channel, probably and impulse one.
