Wave analysis:

The attempt to continue growth during Friday’s trading session failed, the GDP/USD pair rebounded 100 points back from the reached intraday high. Thus, current wave structure accepts the possibility for the currency pair to continue decline to the lower line of ascending channel, which passes near the level of figure 54. At the same time, the Friday’s growth of the quotes to the level of 1.5635 may get further development; in this regard wave 5 will be more complex and extended in form, probably in form of a wedge.

Targets for down wave:

1.5529 – 76.4% of Fibonacci

1.5392 – 61.8% of Fibonacci

Targets for up wave:

1.5700 – 1.5800

Summary and trading recommendations:

Probably the pound has finished building of rising wave which is determined as wave 5 of up wave pattern. If this assumption is correct, then the decline of the quotes started in terms of new down trend pattern with targets placed near the calculated targets 1.5529 and 1.5392, which is corresponding to 76.4% and 61.8% of Fibonacci. If the form of wave 5 is more complex, then the rising will continue with targets placed near figures 57 and 58. Uprising channel support the outlook of continuation of building of uptrend channel, break of its lower forming line provides us with the idea about the completion of up pattern and the readiness of the pair to build trend channel.