Wave analysis:
Despite the efforts, during yesterday’s trading session, the GBP/USD pair did not manage to reverse from the level corresponding to the previous week’s low (1.6160) and adding more than 70 points consolidated near the level of 1.6200. Meanwhile, due to the currency pair has moved to the stated prices, the high of September 18-19 may be regarded as the top of wave 3 in terms of upward trend, starting from the last days of August. If this assumption is correct, then it looks like the currency pair aims at testing the calculated targets placed near the level of figure 63.
Targets for down wave:
1.6051 – 161.8% of Fibonacci
1.5969 – 127.2% of Fibonacci
Targets for up wave:
1.6300
Summary and trading recommendations:
The British pound continues building of an uptrend; the corrections have been done to its structure. The increase of the quotes continues with the targets placed near figure 63 in terms of assumed wave 5 in 5. After the completion of downward wave or a series of waves with targets placed near 1.6051 and 1.5969, which is corresponding to 161.8% and 127.2% of Fibonacci. Upward channel preserves the perspectives of continuation of building of upward trend channel. The break of its lower forming line suggests that the currency pair is ready to build the down wave.
