Monday, August 25, 2014
GBP/USD - Wave 1 ended at 1.6534
Wave 1 extended slightly lower than the ideal 1.6579 target, but that does not change the overall need for a short term correction higher to at least 1.6844 (the top of wave iv of one lessor degree). A correction to 1.6844 will also be very close to the 50% corrective target of the decline from 1.7191 to 1.6534, which comes in at 1.6860.
Short term a break above minor resistance at 1.6597 indicates, that the correction in wave 2 towards 1.6844 is developing, while a break above resistance at 1.6679 confirms the correction.