Having opened the yesterday’s trading session with a 60-point gap, the GBP/USD pair has worked out the calculated target which corresponds to the level 1.5950 and afterwards it made an attempt to close the ‘window’. Thus, assumed wave 3 in terms of upward trend channel starting from the low of August 6, has taken a completed form. If this assumption is correct, then from the reached high (1.5965) the currency pair may move to the level of figure 58. At the same time the dynamics for the quotes growth allows it to make its inner 3 wave structure more complex and the price may test the level of 1.6000.
Targets for down wave:
1.5866 – 127.2% of Fibonacci
1.5801 – 100.0% of Fibonacci
Targets for up wave:
1.5948 – 161.8% of Fibonacci
Summary and trading recommendations:
The British pound continues to make the inner wave structure of upward trend channel more complex. If this assumption is correct, then the rise of the quotes will continue with targets placed near the level of 1.5948 which is corresponding to 161.8% of Fibonacci; if the attempt to break this level is successful, then towards the figure 60. The first unsuccessful attempt to break the level 1.5950 suggests that the pair is ready to build bearish wave with targets placed near the levels of 1.5866 and 1.5801, which is corresponding to 127.2% and 100.0% of Fibonacci.
The material has been provided by InstaForex Company - www.instaforex.com