FX.co ★ GBP/USD wave analysis for March 16, 2011

Yesterday the GBP/USD currency pair could not pass the 62 figure level and started to decline from Monday’s highs. At the same time testing Friday’s lows (1.5980) resulted in a 130 pip rebound in favour of the pound. Thus, given the current situation we might suppose both resumption of uptrend and continuation of corrective decline directed to the 58 figure, in the range of the c wave of current correction. In the meantime, the MACD divergence indicates that formation of a new section of the uptrend initiated December 2010 is more likely.