FX.co ★ GBP/USD wave analysis for May 6, 2011

Yesterday’s GBP/USD trading confirmed our expectations of a more complicated inner wave structure of the downside movement initiated May 1 to be formed. At the same time, given the fact that the decline of the pound is limited by the 5-wave structure, its targets may be located near yesterday’s low or even lower, near the 1.6255 level. If so, the price might complete the 1st wave (or A) near the above mentioned levels and start a rollback to the upside in the direction of the 65 figure.