03.10.201311:35 Forex Analysis & Reviews: Wave analysis of the GBP/USD pair for October 3, 2013

Wave analysis:

Despite the fact inner wave structure of the fifth wave in 5 looks rather completed, during yesterday’s trading session the GBP/USD pair resumed its growth, having tested the level of 1.6250 in the second half of the day. Meanwhile, there is an alternative in the development of wave structure; its implementation will lead to complication of the fifth wave in 5 and test of the level of figure 63. If this assumption is correct, then at the stated level the currency pair will start dropping, which the indicators that reversed against the trend indicator points.

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 uptrend channel; corresponding changes have been done to its structure. The increase of the quotes continues with targets placed near the level of 1.6289, which is corresponding to 261.8% of Fibonacci in terms of assumed wave 5 in 5. After completion of building of up wave, building of down wave or a series of waves with targets placed near 1.6142 and 1.6051, which is corresponding to 200.0% and 161.8% of Fibonacci start. Upward channel preserves the perspectives of the continuation of upward trend channel. The break of its lower line suggests that the pair is ready to build the down wave.