Wave counting analysis:
On February 11, the GBP / USD pair lost about 85 bp, therefore going to the construction of an estimated wave of 5, 1, or a new downward trend. In the near future, the pair may complete the construction of this wave and proceed to the construction of a corrective 2 or b. An unsuccessful attempt to break through the 50.0% level on the older Fibonacci grid could just lead to this. On the other hand, the news background still does not contribute to the pound sterling increase, but a not too deep wave 2 or b can still be built. In the near future, Theresa May is going to continue its negotiations with the EU and postpone the date of voting on the plan for leaving the European Union to a later date.
1.3216 – 0.0% Fibonacci (formal goal)
1.2827 – 50.0% Fibonacci
1.2734 – 61.8% Fibonacci
General conclusions and trading recommendations:
The wave pattern implies the completion of the construction of the first wave of the downward trend section in the near future. Thus, now, I recommend closing sales when there are signs of completion of this wave. An unsuccessful attempt to break the 1.2827 mark could be such a sign. Consequently, I expect to build a correctional wave.
The material has been provided by InstaForex Company – www.instaforex.com