FX.co ★ Wave analysis of GBP/USD for September 11, 2013

Wave analysis:

Despite the fact the indicators are considerably overbought, it looks like the GBP/USD pair is aiming to break the June’s high which corresponds to the level of 1.5750. Meanwhile, the whole wave structure developing from the low of August 28 takes more complex though more completed view, in spite of the fact that the price may grow 100 points, higher than the June’s high.

Targets for down wave:

1.5646 – 11.4% of Fibonacci

1.5571 – 23.6% of Fibonacci

Target for up wave:

1.5750

Summary and trading recommendations:

The British pound decided to complete the inner wave structure of the upward trend channel breaking former high and may break the June’s high. If it is correct, then the rise of the quotes continues with the targets placed near the level of 1.5750 and higher to the figures 58 and 59. In terms of correctional down wave the decline of the quotes may start with targets placed near 1.5646 and 1.5571, which is corresponding to 11.4% and 23.6% of Fibonacci. From the current positions the instrument may start building of a new down wave. Ascending channel preserves the outlook of continuation of upward trend channel, the break of its lower line gives confidence that the instrument is ready to build a new down trend channel.