Wave analysis of GBP / USD pair on February 5. Background news does not allow the pound to complete the ascending segment

Wave counting analysis:

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On February 4, the GBP / USD pair lost 35 bp. Despite the fact that wave 4 takes a fairly extensive form and now it already reached 50% mark of Fibonacci from the size of wave 3, the chances that the ascending section of trend will continue its formation. However, I warn you that the news background is clearly not on the side of the "British", therefore, it will be extremely difficult to continue raising the instrument. The situation with Brexit is not yet resolved and the top officials of the EU continue to stand their ground, not agreeing to new negotiations with Britain, whose parliament does not agree with the current version of the Brexit deal. Thus, the variant with the new fall of the pound and the transformation of the wave pattern into a more complex must be ready.

Purchase targets:

1,3297 - 127.2% Fibonacci

1.3367 - 127.2% Fibonacci

Sales targets:

1.2996 - 76.4% Fibonacci

1.2889 - 61.8% Fibonacci

General conclusions and trading recommendations:

The wave pattern still assumes the construction of an upward wave of 5, 3. Hence, I expect the resumption of the increase but considering the lengthening of wave 4, I recommend buying the instrument with targets near the estimated level of 1,3297, which equals 127.2% based on Fibonacci after receiving weighty confirmation of the readiness of the instrument to build a new ascending wave. A successful attempt to break through the mark of 1.3023 will most likely cancel the variation with the construction of wave 5 in 3.

The material has been provided by InstaForex Company - www.instaforex.com