Wave analysis:
On the whole, as it was expected, during yesterday’s trading session, the GBP/USD pair continued formation of wave structure of practically horizontal correction, staring assumingly from the last week’s low. Meanwhile, such horizontal structure may be regarded as the second wave, or b in terms of more extended downward movement. If this assumption is correct, then the currency pair may resume the decline towards the level of 1.5880 in the nearest term.
Targets for down wave:
1.5881 – 38.2% of Fibonacci
1.5795 – 50.0% of Fibonacci
Targets for up wave:
1.6142 – 200.0% of Fibonacci
1.6300
Summary and trading recommendations:
Probably the British pound has accomplished building of upward trend channel, which looks rather completed. If the uptrend becomes more complex, then the rise of the quotes will continue with targets placed near the level of 1.6142, which is corresponding to 200.0% of Fibonacci and the attempt fails, then towards the figure 63. Unsuccessful attempt of breaking the level of 1.6142 (no.1) suggests that the pair is ready to build downward wave or a series of waves with targets placed near the calculated levels 1.5881 and 1.5795, which is corresponding to 38.2% and 50.0% of Fibonacci.
