FX.co ★ GBP/USD Wave Analysis for April 6, 2012

Wave marking analysis:
Having completed during the yesterday’s Asian session the formation of the 4th wave, the GBP/USD pair resumed the descending movement and has nearly reached the level of figure 58. The downside movement that begun on April 2 is presently looking as completed 5-wave structure. If that proves to be so, the pair will probably rebound from last day’s low towards the point 1.5950. at the same time, considering the strong interest to dollar on the market, the 5th wave will apparently be prolonged resulting in decrease of quotes and testing of the level 1.5700.

Targets for the wave 5 in 1 or A:
1.5779 – 61.8% according to Fibonacci
1.5712 – 76.4% according to Fibonacci

Targets for the wave 2 or B:
1.5887 – 38.2% according to Fibonacci
1.5954 – 23.6% according to Fibonacci

Genera conclusions and trading recommendations:
At the moment the new downside part of the trend is being formed within the wave 1 or A. Intermediate targets are seen at Fibonacci levels 1.5779 and 1.5712 which are equal to 61.8% and 76.4% of Fibonacci respectively. The inner wave structure of the current wave points at the development of the wave 5 inside it indicating the possible growth of the pair in the nearest future. This growth is expected to take place within the wave 2 or B that may rise the quotes towards 1.5954 that corresponds to 23.6% of Fibonacci.