The wave counting for the Pound/Dollar instrument still raises a large number of questions. Now the last decline in the instrument is identified as a new three-wave structure or wave e. In any case, the wave counting becomes more complicated and confusing again. During the day, the instrument gained about 80 basis points and, apparently, completed the construction of the next downward wave. If this is true, then the rise in quotes will continue. The only question now remains whether the entire last downward trend segment, which began on June 1, is a five-wave structure or more complex. The picture below shows a variant in which the current trend segment has already been completed and took the form a-b-c-d-e. From my point of view, this is a fairly workable scenario. Initially, I assumed that the downward trend segment would take only a three-wave form. Therefore, now I am inclined to believe that it is completed. If so, the instrument has started building a new upward trend section, the targets of which can be located up to the high of the previous upward trend.
The Pound/Dollar instrument has been under pressure from the difficult situation with the coronavirus situation in the UK in the past few days. However, today the markets stopped reducing demand for the pound, and the instrument began to roll back up. From my point of view, this is a logical outcome, since the pound sterling has already lost about 250 basis points due to heavy news from the UK. However, it is still too early to draw definitive conclusions. At the moment, the increase in coronavirus cases has slowed, but at the same time, a record number of deaths from the virus was recorded yesterday. A record since March 24 this year - more than 100 people. It also became known that about half of the total number of deaths during the last wave were fully vaccinated.
Experts say that the death rate remains quite low. However, deaths are still recorded which means that there are big claims against the British government. Let me remind you that Boris Johnson lifted all quarantine restrictions in the country since Monday, while the number of cases was approaching the maximum values of the previous wave. Former adviser to the Prime Minister Dominic Cummings continues to add fuel to the fire, who in a new interview said that the appointment of Boris Johnson to his post in 2019 was caused by the need to solve "some problem", and not because everyone in the ranks of the Conservative Party believed that Boris Johnson was the right person for this post. Cummings said that Johnson has absolutely no plan for how to lead the country.
At this time, the wave pattern remains very complex. The construction of the downward trend is supposedly completed, but it can still take on a more complex form. The last downward wave can end at any moment, as it largely depends on the news background. Thus, I now recommend cautious buying of the instrument with targets 100 pips above the current price.
The upward part of the trend, which began its construction a couple of months ago, has taken on a rather ambiguous form and has already been completed. However, the wave counting still looks rather complicated, as there is no impulse movement now. At this time, presumably, the construction of a complicated downward trend section continues, which may have taken the form a-b-c-d-e.
The material has been provided by InstaForex Company - www.instaforex.com