Wave analysis:
As it was expected, during yesterday’s trading session the GBP/USD pair continued moving towards the level of figure 63. However, after it had reached the level of 1.6265, the price reversed 70 points from the day’s high. Meanwhile, the inner wave structure of the fifth wave in five assumes the possibility of the pair to test the calculated target for the whole uptrend, placed in the range 1.6290–1.6310. At the same time MACD divergence points out the correctional decline may start virtually any time.
Targets for down wave:
1.6142 – 200.0% of Fibonacci
1.6051 – 161.8% of Fibonacci
Targets for up wave:
1.6289 – 261.8% of Fibonacci
Summary and trading recommendations:
The British pound continues building of an uptrend channel; the corrections have been done to it. The increase of the quotes continues with the targets placed near 1.6289, which is corresponding to 261.8% of Fibonacci in terms of assumed wave 5 in 5. After the completion of building of up wave, formation of down wave or a series of waves with targets placed near calculated targets 1.6142 and 1.6051, which is corresponding to 200.0% and 161.8% of Fibonacci. The rising channel preserves the perspectives of continuation of an upward trend channel. The break of its lower forming line suggests that the pair is ready to build the down wave.
