The section of the trend, which originates on September 23, took a five-wave fully equipped form. The internal wave structure of the proposed wave 5-5 does not look quite convincing and may require additions and adjustments, as well as the entire wave 5. Nevertheless, the upward trend section has long been nearing its end, perhaps now is the time?
On the lower chart, wave marking has also undergone certain changes and may require adjustments. Within the upward wave 5, the wave structure can be complicated as many times as necessary. At the moment, it is quite possible to resume the increase in the quotes of the instrument within the wave 5-5-5. At the same time, the wave marking of the wave 5-5 does not look quite convincing. A delicate point, you need to be careful.
Brexit is officially over, the trade agreement has been signed, and the UK is starting a new page in its history. The Briton has been rising in the last 6-9 months but has not always had a reason to do so. However, now these grounds are no longer there. Brexit has passed – and this is positive news, but more analysts are paying attention to the fact that the British economy will still experience serious problems in the next six months to a year. The reasons are called the third "lockdown", a serious increase in cases of coronavirus in recent weeks, the fall of the economy due to Brexit and the pandemic, a far from comprehensive deal with the European Union, and so on. Thus, if we pay attention to purely economic reasons, the British pound should have started to decline long ago. The overbought factor has not been canceled. However, the British began to decline now. And even this decline is still difficult to call a trend. Then, when the next political crisis begins in America, Donald Trump may find himself under the second impeachment procedure, and the statistics coming from the United States begin to disappoint traders. By the way, only one report was disappointing. On Friday, a report on Nonfarm Payrolls (one of the most important reports in the US) was released, which was significantly below market expectations. However, the demand for the US currency did not decrease on this day. On the contrary, the US dollar has started and continues to grow stronger in the foreign exchange market. There was no major news or reports on Monday. There won't be much news tomorrow either. And all news that does not relate to the economy is not particularly taken into account by the markets, although it is quite important and interesting. In any case, the topic of impeachment of Donald Trump can be followed.
General conclusions and recommendations:
The pound/dollar instrument can resume the construction of an upward trend section at any time. Thus, I currently recommend buying the pound/dollar instrument in case of an unsuccessful attempt to break the 100.0% Fibonacci level with targets located around 37th and 40th figures, within the expected wave 5-5-5 of the upward trend section. But still, it should be understood that the upward section of the trend cannot be extended indefinitely. And the closer it gets to completion, the more dangerous it is to buy the pound.
