Wave counting analysis:
On February 6, the GBP / USD pair lost another 20 bp, so the current wave counting was fully preserved. It is still expected to build a downward wave 1 or a new downtrend trend. However, much depends on and will depend on the news background. Today, for example, Mark Carney’s press conference will be held on the outcome of the Bank of England meeting. On the other hand, the Prime Minister of Great Britain Theresa May will meet today with the President of the European Commission Jean-Claude Juncker, and border issues on the island of Ireland will be condemned. Any positive information can lead to an increase in the pound and the construction of a correctional wave. Negative – to continue building wave 1 or a.
1.3216 – 0.0% Fibonacci (formal goal)
1.2827 – 50.0% Fibonacci
1.2734 – 61.8% Fibonacci
General conclusions and trading recommendations:
Wave pattern involves the construction of the first wave. Therefore, I recommend selling the instrument with targets located near the estimated marks of 1.2827 and 1.2734, which corresponds to 50.0% and 61.8% in Fibonacci. Furthermore, the fall potential of the pound sterling is very high, but everything will depend on the progress in the Brexit negotiations.
The material has been provided by InstaForex Company – www.instaforex.com