FX.co ★ Wave analysis of the GBP/USD pair for September 20, 2013

Wave analysis:

It seems like an uptrend which is running over allowed the GBP/USD pair to break through the level of 1.6150. As a result, during the yesterday’s trading, the price reversed 120 points from the day’s high. Meanwhile, despite such a dramatic decline, the inner wave structure of the fifth wave at the moment looks incomplete letting us to consider the reached in the second half of the day low as completion of fourth wave in this fifth. If this assumption is correct, then the currency pair may resume the growth of the quotes to the level of figure 62, or even figure 63.

Targets for down wave:

1.5969 – 127.2% of Fibonacci

1.5904 – 100.0% of Fibonacci

Targets for up wave:

1.6142 – 200.0% of Fibonacci

1.6300

Summary and trading recommendations:

The British pound continues complicating the inner wave structure of the upward trend channel. If this assumption is correct, then the rise of the quotes will continue with targets placed near the level 1.6142, which is corresponding to 200.0% of Fibonacci and if the attempt is successful, then towards that level, to figure 63. Unsuccessful attempt to break the level of 1.6142 suggests that the pair is ready to build down wave with targets placed near the calculated targets 1.5969 and 1.5904, which is corresponding to 127.2% and 100.0% of Fibonacci.