The construction of a new downward trend section is expected to continue. However, every day there is more and more confidence that everything will end with a-b-c waves. If this is true, then the price increase will continue from the current levels with targets located near the peak of the z wave. A successful attempt to break the maximum of wave b also indirectly indicates the readiness of the markets for new purchases of the instrument.
On closer inspection, it is clear that the wave marking really took a three-wave form that looks quite convincing. The failed attempt to break the 61.8% Fibonacci level only further assures me that the descending set of waves is complete but the successful attempt to break through the 38.2% level in the end suggests that the markets are quite ready for a new increase in the British Pound's quotes. This is a bit strange given the news background from the UK but the markets are now paying more attention to the news background from the US, which also leaves much to be desired.
Markets continue to ignore the news background from the UK, so the British Pound continues to enjoy moderate demand. Plus, the news background from America is also bad. Since September 11, no currency can be preferred since none of the currencies have grown significantly during this time period. Nevertheless, a successful attempt to break through the 38.2% level, on the one hand, allows us to conclude that the market is ready for new purchases of the Pound but, on the other hand, it may be false. The current wave layout still allows for serious complications. All because of the very ambiguous news background from the UK and the US, which often contradicts the movements of the Pound/Dollar instrument.
The Pound continues to be in demand at a time when the second wave of the epidemic has just begun in the UK. There is also still no progress on the Brexit negotiations with the European Union and the Internal Market Bill can greatly spoil relations between London and Brussels, putting an end to any future agreements. As early as this week, an EU summit will be held to discuss Brexit and the agreement with Britain again. There are already rumors that the EU's position will become tougher in the negotiations. In general, on the basis that the pound is currently in demand, it is unclear. Based on this, we can assume that a new downward wave will begin in the near future, which will greatly complicate the expected correction wave 2 or the entire section of the trend that begins on September 1. A successful attempt to break through the 38.2% Fibonacci level (now from top to bottom) will make this scenario more likely.
General conclusions and recommendations:
The Pound-Dollar Instrument has presumably completed the construction of a downtrend section. A successful attempt to break through the 38.2% level allows us to recommend buying a tool with targets located near the 1.3191 and 1.3480 marks (which corresponds to 23.6% and 0.0% Fibonacci) for each new MACD signal "up". However, the current news background for the tool is such that it can lead to a strong complication of the current wave markup.
