Alexander Dneprovskiy
Wave analysis
As expected, during yesterday trading the GBP/USD continued to form the inner wave structure of the upside correction. At the same time, the correction level 38.2% (1.6055) might act as a possible target for such correction. In the meantime, the whole correction structure would look much more convincing if the level 50.00% (1.6160) coinciding with the upper limit of the inclined corridor was hit.
http://instaforex.com/forex_analysis/38822/?x=OUE
There is a scenario of global slowdown, mainly influenced by the debt problems of Europe and the delicate economic situation facing the U.S., which now has a population growth of around 1% that fails to reduce the high levels of unemployment. In this environment, emerging countries, mainly Latin Americans, although they are entrenched in a situation with respect to external shocks, and are not immune to a possible worsening of the fiscal crisis of the G3 debt and feel the impact, especially relating to external trade (real channel) and capital flows (financial channel).
GBP/JPY is developing impulse wave С (colored light green in the chart) of medium term downtrend from 127.31. Within this wave there are four subwaves (colored royal blue in the chart) with subwave 4 still developing from 123.04.