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The two plans for GBP/USD

04 April 2016, GBP/USD

At the moment, pound suggests two plans. The first one - zigzag with the plane as the wave b, so we got a bullish correction.

Then the price entered the downward momentum as the wave i of the emerging larger bearish momentum. It was followed by growth which failed to update High that indicates its corrective nature.

After that a decline was formed, which we witness at the moment and that is probably not over yet. Thus, according to this plan, in the future we can expect a continued drop of the pair within the border of the wave iii of downward momentum.

Now, let's consider another option suggesting further growth of the pair.

Probably, now we witness development of zigzag in which the wave b took the form of a diverging horizontal triangle.

Now the price is completing the correctional wave 2, and therefore, in the future we expect impulse growth of the pair boosted by wave 3 of c. < p> As we can see both versions have equal chances, so we should make decision only when the situation is more clear, in the meantime we are to monitor fluctuations of the price

Vasiliy Lukin
FreshForex Analyst
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