On April 24, the GBP / USD pair dropped another 35 basis points, having fulfilled a previously successful attempt to break through the 100.0% Fibonacci level. Thus, the current wave counting implies a further reduction of the instrument with targets of 127.2% and 161.8% Fibonacci as part of building the proposed wave 3. Considering the unresolved situation around Brexit, I assume that the pair can update the minima in the future this year. The pound sterling does not receive any support from the news, and this is a significant factor for the market to continue getting rid of this currency. In the coming months, market sentiment will again depend on the progress of reaching an agreement on Brexit, no longer between the EU and the UK, but between Theresa May and the Parliament.
Purchase goals:
1.3118 - 61.8% Fibonacci
1.3168 - 50.0% Fibonacci
Sales targets:
1.2839 - 127.2% Fibonacci
1.2693 - 161.8% Fibonacci
General conclusions and trading recommendations:
The wave pattern still involves building a downtrend trend, especially after breaking through the bottom line of the triangle. Now, I recommend selling a pair with targets located near the estimated marks of 1.2839 and 1.2693, which corresponds to 127.2% and 161.8% in Fibonacci.
The material has been provided by InstaForex Company - www.instaforex.com