The wave counting for the Pound/Dollar instrument still raises a lot of questions. The last descending wave is now identified as wave e and, if the current wave count is correct, then at this time the construction of the downward trend section is completed and the construction of a new upward trend section has begun. The downward section of the trend ended near the lows of the previous downward section. Thus, I can assume that the targets of the new upward section are located near the peak of wave e. A new upward section of the trend may take a three or five-wave structure, but it is unlikely to be impulsive. Most likely, a correction section of the trend will be built again.
The Pound/Dollar instrument rose by 70 basis points on Monday and continued building the first wave of a new upward trend section. The news background was almost zero today, as there were no economic reports during the day. Nevertheless, the markets have found the strength to increase demand for the pound sterling, which is even a little strange, since the pound continues to show a good range of movements, although the news background has long been very weak and the Euro/Dollar instrument very eloquently shows that the news background is now practically absent, with its minimum amplitude. Thus, for this week, the Fed meeting on Wednesday, as well as the US GDP report, which will be released on Thursday, will also be of great importance for the pound. Meanwhile, there are no interesting events expected in the UK during the current week.
The general news background now also does not answer the question of what to expect from the Pound/Dollar instrument. If a week ago it was reasonable to expect a decrease in the pound, since the number of coronavirus cases in Britain was growing rapidly, now this factor is no longer there. In general, there is only one thing left: to study the wave count and wait for news.
At the moment, the wave pattern remains very complex. The construction of the downward trend section is presumably completed. I continue to count on the construction of a new upward trend section, so I recommend buying the instrument for each MACD signal "up" with targets located near the 1.3872 mark, which corresponds to 23.6% Fibonacci.
The upward section of the trend, which began its construction a couple of months ago, has taken a rather ambiguous form and has already been completed. However, the wave counting still looks quite complicated, since there is no impulse movement. At this time, it is assumed that the construction of a complicated downward trend section has been completed, which may have taken the form a-b-c-d-e.
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