Wave analysis:
During the Friday’s trading session the GBP/USD pair resumed upward movement and in the second half of the day moved closely to the highs of September 18. Thus, the currency pair proved the fears that had been expressed previously, that strong impulse observed in September will force the currency pair to test again the reached highs. Meanwhile, the current uptrend channel may develop toward the level of figure 62. In this regard formed earlier wave structure of the upward trend starting from the low of August 28 will demand to make the corrections.
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:
The British pound makes an attempt to continue building of the uptrend and make it more complex. If the uptrend channel continues to become more complex, then the increase 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 is successful, then towards figure 63. Unsuccessful attempt to break the level of 1.6142 suggests that the pair is ready to build down 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.
