Wave counting analysis:
On April 23, the GBP / USD pair dropped another 40 basis points. and finally made a successful attempt to break through the lower generatrix of a narrowing triangle and the level of 0.0%. Thus, the conclusion suggests itself that the instrument is ready for the construction of a downward wave 3, which can take a very long form. The news background for the pair is now exactly on the background, which can surely allow the markets to get rid of the pound sterling. Yesterday, the European Commission said that there would be no revision or new negotiations on Brexit with the UK. Thus, London will have to solve the issue with the option of Brexit alone. The odds of an orderly Brexit, despite the postponement, are falling again.
1.3118 – 61.8% Fibonacci
1.3168 – 50.0% Fibonacci
1.2839 – 127.2% Fibonacci
1.2693 – 161.8% Fibonacci
General conclusions and trading recommendations:
The wave pattern still involves building a downtrend trend, especially after breaking through the bottom line of the triangle. Now, I recommend selling a pair with targets located near the calculated levels of 1.2839 and 1.2693, which corresponds to 127.2% and 161.8% in Fibonacci.
The material has been provided by InstaForex Company – www.instaforex.com