Wave analysis:
Despite the potential, during yesterday’s trading session the GBP/USD pair could not develop considerable downward movement, staying for the whole day near the level of figure 55. Meanwhile, as it was the day before it, inner wave structure assumed wave c looks uncompleted. If it is so, the currency pair has a chance to decline to the calculated target, located near the level of 1.5400–1.5380. At the same time situation in Syria may serve as a sufficient reason for the price drop to the next calculated target, placed 100 basis points lower.
Targets for down wave:
1.5392 – 61.8% of Fibonacci
1.5281 – 50.0% of Fibonacci
Targets for up wave:
1.5529 – 76.4% of Fibonacci
1.5643 – 88.6% of Fibonacci
Summary and trading recommendations:
The British pound has finished building of upward trend channel and at the moment is forming. If this assumption is correct, then the decline of quotes will continue in terms of downward trend channel with targets placed near the levels of 1.5392 and 1.5281, which is corresponding to 61.8% and 50.0% of Fibonacci. In terms of correctional up wave the rise of the quotes may start with targets placed near 1.5529 and 1.5643, which is corresponding to 76.4% and 88.6% of Fibonacci. Upward channel supports the outlook of the continuation of building upward trend channel, break of its lower line suggests the building of a more complex downward trend channel, probably, impulse one.
