GBP/USD Wave Analysis for December 20, 2012

GBP/USD Wave Analysis for December 20, 2012 2012-12-20	5/5

Show full picture Wave Analysis:
As it was expected the GBP/USD pair tried to test level of 63 figure and it led to dynamic rebound of the pair from the high (1.6305) for more than 50 basis points. Meanwhile, despite the descending movement, the inner wave structures of both wave 5 and wave 3 do not look completed. If it is so, it is most likely that the GBP/USD pair will resume growth of the quotes towards the targets placed up to the level of 1.6500.
Targets for New Down Wave (probably correctional one in terms of wave 5):

1.6254 – 100.0% of Fibonacci
1.6200 – 323.6% of Fibonacci

Targets for Up Wave (presumably 3 in 5 or 5 in 5):

1.6300 – 127.2% of Fibonacci
1.6400 – 1.6500

Summary and Trading Recommendations:
The British currency worked out the upper line which was forming ascending channel. It moved out the channel. At the moment the pair continues building of uptrend. Upward movement may extend with targets 1.6254 and 1.6200, which is corresponding to 100.0% and 323.6% of Fibonacci in terms of 3 in 5 or 5 in 5. In terms of wave 5 of the upper trend wave 4 (correctional one) may be built with targets placed higher the level of 1.6300, which is corresponding to 127.2% of Fibonacci. Divergence of MACD signalled that the instrument was ready to form down wave. It is most likely that it will be a correctional one.