Wave counting analysis:
On March 27, the GBP/USD pair fell by 40 basis points. Such a low market activity is explained by the fact that the British government did not take any important and unexpected decisions, despite the important parliamentary votes last night. All 8 options for Brexit were rejected by a majority of deputies. The only thing parliament has come to is the agreement to postpone Brexit to a later date. What Brexit will be like when this "later date" comes is still not clear and the instrument continues to be traded in a small price range. The outlook of the wave assumes the construction of a downward wave 3. But how does this wave form considering that the markets simply do not want to trade a pair? - That is, thanks to the news background.
Purchase targets:
1.3350 - 100.0% Fibonacci
1.3454 - 127.2% Fibonacci
Sales targets:
1.2961 - 0.0% Fibonacci
General conclusions and trading recommendations:
The wave pattern assumes the construction of a downward wave 3 has currently GBP/USD traders have no desire to trade. Hence, we need to wait until this market mood passes. So far, there is no reason to change the wave marking and the news background does not affect the tool.
The material has been provided by InstaForex Company - www.instaforex.com