Wave analysis of GBP / USD for May 2. The impressive growth of the pound may be replaced by a stronger fall

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Wave counting analysis:

On May 1, the GBP / USD pair gained about 20 basis points, but by the end of the day, just like the euro, it rolled back from the reached maximums. With the pound sterling, the situation is less clear. In addition, wave counting also involves the construction of a downward wave. However, the MACD indicator did not turn down, and the deviation from the reached maximums is small. Today, the results of the Bank of England meeting will be announced in the UK, and the head of the bank, Mark Carney, will also deliver a speech. Thus, if the markets perceive the information from the Bank of England negatively, this may lead to a new decrease in the pound, a turn of the MACD downwards, and the resumption of the construction of wave 3.

Purchase goals:

1.3118 - 61.8% Fibonacci

1.3168 - 50.0% Fibonacci

Sales targets:

1.2954 - 100.0% Fibonacci

1.2838 - 127.2% Fibonacci

General conclusions and trading recommendations:

Wave pattern still involves the construction of a downward trend. Now, I recommend waiting for the completion of the corrective wave construction and selling the pair with targets located near the estimated levels of 1.2839 and 1.2693, which corresponds to 127.2% and 161.8% Fibonacci. A signal from the MACD may indicate the pair's willingness to construct a downward wave.

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