Wave analysis:
Yesterday’s decision taken by the FOMC allowed the pound to continue the process of consolidation against the US dollar. As a result by the close of the American trading session the GBP/USD pair could go up almost 270 points, reaching the level of 1.6160. Thus, as it was expected, the currency pair has moves to the stage of formation of the fifth wave in terms of upward trend channel starting from the low of August 28. If this assumption is correct, then the calculated target for this fifth wave corresponds to the level of figure 63. At the same time, if the price reaches the level of 1.6200, it may result in the reverse of the market and start of rather extended and profound correction.
Targets for down wave:
1.6051 – 161.8% of Fibonacci
1.5969 – 127.2% of Fibonacci
Targets for up wave:
1.6142 – 200.0% of Fibonacci
1.6300
Summary and trading recommendations:
The British pound continues complicating the inner wave structure of the uptrend. If this assumption is correct, then the rise of the quotes continues with targets placed near the level of 1.6142, which is corresponding to 200.0% of Fibonacci. If the attempt to break it fails, then, towards the figure 63. Unsuccessful attempt to break the level 1.6142 suggests that the pair is ready to build down wave with targets located near the calculated targets 1.6051 and 1.5969, which is corresponding to 161.8% and 127.2% of Fibonacci.