On Euro-Pound day graphic we can easily see correction level 38.2% work-off from dimension of downward trend wave 3 (or C). But on 4-hourly scale, a pair demonstrated second attempt to form a top of current UP-trend. If price will continue to form a wedge, which well good can be seen on graphic with day’s timeframe, it is logical to expect soon u-turn. MACD also allows examining a possibility for u-turn. In order to prevent unwarranted looses, it is logical to wait for trend u-turn round or wait for proof of its continuation.

Analysis prepared by:

Maxim Dmitrievsky
Forex4you analyst