Wave analysis:
During yesterday’s trading session the GBP/USD pair could not opt for movement direction, staying in the range under the level of figure 56. Meanwhile, the whole price movement from the low of the previous week looks like a continuation of building of a complex corrective structure, taking the form of descending triangle. If the assumption is correct, moving slowly the currency pair may consolidate under the lower level of ascending channel.
Targets for down wave:
1.5409 – 50.0% of Fibonacci
1.5336 – 61.8% of Fibonacci
Targets for up wave:
1.5646 – 11.4% of Fibonacci
Summary and trading recommendations:
The British pound has completed formation of upward trend channel and at the moment is building a corrective channel. If the assumption is correct, the decline of the quotes will resume in terms of downward trend channel with targets placed near 1.5409 and 1.5336, which is corresponding to 50.0% и 61.8% of Fibonacci. In terms of correctional upward wave the rise of the quotes may continue with targets located near the level of 1.5646, which is 11.4% of Fibonacci. From the current positions the instrument may start building of a new downward wave. Upward channel preserves perspectives of the continuation of building of upward trend channel, the break of its lower line provides us with the prove the instrument is ready to build downward trend channel.
