Wave analysis for EUR / USD and GBP / USD pairs on May 28. The markets once again sell the euro and the pound amid "zero"

EUR / USD pair

-xtOBomyW6k9kRdWoPYvtbYXPU4-Aud-HHTodjhp

Bidding on the EUR/USD pair on Monday, May 27, ended with a decline of 15 basis points. Thus, the pair shows a willingness to resume building a downward trend within the proposed wave 3 with a complication in wave 2, 3, 3. If this is true, the decline will continue with targets located near the Fibonacci level of 161.8%. News background is now completely neutral for the pair. At the end of last week, the euro received support from weak news from the US on business activity and orders for durable goods. But the effect of the publication of these news has already passed and the market is again moving to a more usual occupation for itself in recent months of sales of the euro and purchases of the dollar. Today, the news background is unlikely to help the euro finish the day without a loss.

Sales targets:

1.1097 - 161.8% Fibonacci

1.1045 - 200.0% Fibonacci

Purchase targets:

1.1324 - 0.0% Fibonacci

General conclusions and trading recommendations:

The euro/dollar pair remains at the stage of building a downtrend trend. The signal from the MACD was formed downward. Therefore, I recommend selling the euro with the targets of 1.1097 and 1.1045, which corresponds to 161.8% and 200.0% in Fibonacci. A restrictive order is recommended to be placed above the level of 76.4% Fibonacci with an unsuccessful attempt to break through which led to a new decrease in the instrument.

GBP / USD pair

rHb-FNndyljx14QKANOZYIEYcJB9bo5mzzTdQvYE

On May 27, the GBP/USD pair lost 30 basis points. Since the situation in the UK is not yet resolved, the markets continue to be unprepared for buying the sterling pound. Even if you do not take into account the situation with Brexit and the resignation of Theresa May, the economic situation in the United Kingdom leaves much to be desired. The investment climate is zero, many well-known companies, whose production is located in Britain, want to move it out of the country. The pound has been falling for several years in a row but how the Brexit will it end is not clear. Additionally, the country is losing money because of Brexit now. In such circumstances, it is difficult to expect from the market zealous purchases of a pound. The wave pattern still assumes the construction of a downward trend and its wave. The MACD indicator has given a downward signal but the news background is now neutral.

Sales targets:

1.2554 - 200.0% Fibonacci

1.2360 - 261.8% Fibonacci

Purchase targets:

1.3175 - 0.0% Fibonacci

General conclusions and trading recommendations:

The wave pattern of the pound/dollar instrument suggests a resumption of the instrument decline within the estimated wave c. Thus, I still recommend selling the pound now with targets located near the calculated levels of 1.2554 and 1.2360, which corresponds to 200.0% and 261.8% Fibonacci. In small amounts at first and in the case of new headlines that will support the dollar, it will be possible to increase sales.

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