Wave counting analysis:
On February 21, the GBP / USD pair lost about 10 bp. Thus, the other remaining are near the maximums of the assumed wave 2. If the current wave marking is correct, then wave 2 has completed its construction, which means that the instrument is preparing to build a new downward wave in the composition downtrend trend. To prevent the execution of this option, there should be positive news for the pound. Yesterday, the media spread the information that the EU and the UK are very close to the new agreement, which should satisfy the parliament. If this information is correct, then it should be accepted at the next vote on the agreement on withdrawal from the EU. And that is, in turn, will be good news for the pound.
Shopping goals:
1.3109 - 76.4% Fibonacci
Sales targets:
1.2734 - 61.8% Fibonacci
1.2619 - 76.4% Fibonacci
General conclusions and trading recommendations:
The wave pattern still assumes the construction of a new downward wave. Thus, now, I recommend selling the pair with targets located near the estimated levels of 1.2826 and 1.2734, which equates to 50.0% and 61.8% Fibonacci. A successful attempt to break through the level of 76.4% on the small Fibonacci grid will induce the conclusion of the complication of the current wave pattern. This option is possible, if the pound suddenly gets the necessary news background for growth.
The material has been provided by InstaForex Company - www.instaforex.com