16.03.201211:07 Forex Analysis & Reviews: GBP/USD Wave Analysis for March 6, 2012

Wave marking analysis:
Despite all the efforts, yesterday the GBP/USD pair remained in the range between 1.5630-1.5720. Proceeding from the current wave situation, the pair is almost equal conditions for resumption either for the descending movement or for the quotes growth towards the February’s maximum (1.5990). At the same time such controversial situation allows the pair to remain in this range for some time forming the more complicated wave structure of the wave 2 within the wave 3 (or the wave C).

Targets for the variant with the wave 3 in 3 or C:
1.5609 and lower – 76.4% according to Fibonacci

Targets for the variant with the wave 2 in 3 or C:
1.5719 – 50.0% according to Fibonacci
1.5747 – 61.8% according to Fibonacci

General conclusions and trading recommendations:
Corrections in the wave marking made it similar to the one of the euro/dollar. The intermediary target for the prospect wave 3 in 3 or C is seen at the Fibonacci level 1.5609 corresponding to 76.4% according to Fibonacci or lower. The MACD divergence stimulated the ascending movement of the pair within the wave 2 in 3 or C. The wave 3 in 3 or C is expected to bring the pair to the low of the wave 1 in 3 or C. The new descending channel, where the price is located, indicates the prospect continuation of the downside movement. But likewise in the euro/dollar wave marking, there is a possibility that the current wave marking will be corrected. Thus, the situation is still considered as controversial.