Wave counting analysis:
On May 8, the GBP / USD pair lost about 70 bp more. It continues to build a supposedly new downward trend with the closest targets located near the minimum of wave y. The upward trend is presumably completed and bears the status of the correction. At the same time, the apparent ambiguity of the current wave marking fully admits the necessity of making corrections. Pound sterling in recent months feels very uncomfortable because of all the political turmoil and the lack of decision on Brexit and moves mainly three-wave formations. The news background is not the benefit of the pound sterling, which leads to the conclusion about the high probability of building a new downward trend.
Purchase goals:
1.3182 - 61.8% Fibonacci
1,3259 - 76.4% Fibonacci
Sales targets:
1.2867 - 0.0% Fibonacci
General conclusions and trading recommendations:
Wave pattern suggests a decrease in the pair. Only negative messages continue to come from the UK, which leads to a new fall in the pound. Now, I recommend small sales of the pair with targets located near the estimated mark of 1.2867, which equates to 0.0% Fibonacci.
The material has been provided by InstaForex Company - www.instaforex.com