Wave counting analysis:
On April 25, the GBP / USD pair fell by only a few base points and, thus, remained within the framework as part of the construction of the downward trend section and its estimated wave 3. The exit from the triangle clearly marked the trend of the instrument for the coming weeks. On the other hand, there is no progress in the process of Brexit, and the UK could potentially face a number of problems associated with the withdrawal from the EU. The country continues to lose huge sums, which is a consequence of the start of the Brexit program. The investment climate in the country is also steadily decreasing. Many companies, whose production is located in the UK, want to move it outside the country. Thus, the prospects for the pound sterling are just as vague as the euro.
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 the construction of 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% Fibonacci.
The material has been provided by InstaForex Company - www.instaforex.com