Wave counting analysis:
On February 19, the GBP / USD pair gained about 140 bp. After that, it went beyond the maximum of the previous wave, which required making adjustments to the current wave marking. Nevertheless, the downward trend, taking its beginning on January 25, still looks like a 5-wave completed structure. Therefore, the current tool enhancement can be identified as a corrective wave set. If this assumption is correct, then the tool can resume its decline from the current position or from the level of 76.4% on the small Fibonacci grid, as part of building a new impulse wave with targets located below the 28th figure. Thus, an unsuccessful attempt to break through the level of 76.4% will indicate that the pair is ready to decline.
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 downward wave. Thus, now, I recommend selling the instrument with targets located near the estimated levels of 1.2826 and 1.2734, which equates to 50.0% and 61.8% Fibonacci. One can wait for the unsuccessful attempt to break through the level of 76.4% for opening sales. As the news background caused demand for the pound and on the wave of these emotions, the market may continue to buy a pound.
The material has been provided by InstaForex Company - www.instaforex.com