FX.co ★ Wave analysis of the GBP/USD currency pair for January 20, 2010

Despite a strong decline of the US dollar, the GBP/USD currency pair price continued to move in favor of the pound. Specifying the chart formatting at a 1-hour chart, it is possible to consider that a leg 5 of a wave C is approaching to the end. Because of it, it is likely that the price will hit the correctional level of 61.8% (1.6475), having completed the wave structure of the 5th wave in the C. Because of the actual equality of the wave 1 and 3, it is can be supposed that the price will not move further than the level, mentioned above. Moreover, the maintained strong divergence of MACD signals about a necessity of the reversal of the British currency in favor of the dollar.

Best regards,

analyst: A. Dneprovskiy