The quotes of the pound/dollar pair continue to leave the reached highs last week, and it still does not fit well into the internal wave structure of the expected wave 3 or C. Thus, it can be assumed that the instrument is already done with the construction of a three-wave ascending wave structure and has now begun the construction of a new triple downwards of the form a-b-c. If this assumption is correct, then the quotes' decline will continue with the targets located around the 36 figure or so. An alternative option involves the resumption of the increase in the quotes of the instrument. I believe that the last two waves, which are now labeled 1 or a and 2 or b, may also be waves d and e of the previous downward trend. Thus, at point c, the first wave of a new upward trend section could then end, and now wave 2 is being built, after which the increase in quotes will resume.
The news background for the instrument on Monday was expressed by only one report –
United States orders for durable goods orders. The actual value of + 0.5% in March is five times lower than forecasts. However, both the euro and the pound ignored this report. The euro continued to decline, and the pound responded with a 15-point pullback, which may be the usual market noise. Thus, I am more inclined to believe that the markets did not pay any attention to this report at all.
At the same time, the American media presented a study and according to which, the rating of the US President Joe Biden has sharply decreased in the last few weeks. It would be more correct to say "just declined", since Biden has been in power for only 100 days. According to The Washington Post, only 52% of Americans surveyed approve at least partially of President Biden's activities, while 42% of respondents said they were dissatisfied with it. The Washington Post also reports that Joe Biden's approval rating is almost equal to the absolute outsider Donald Trump, whose rating was about 42% after 3 and a half months of work. It should also be noted that the majority of those who do not approve of President Biden are supporters of the Republican Party. Thus, this rating is quite inaccurate. As for Britain, there was an empty news background on Monday, and the wave pattern, although not the most unambiguous, is now more important than the news background. In the UK as a whole, there will be no major events or reports this week.
At this time, the wave pattern has slightly cleared up, so it is now suggested to sell the instrument for each MACD downward signal, counting on the formation of a new three downward waves. However, the wave pattern still does not look fully clear and may still require some additions and adjustments.
The part of the trend, which originated on September 23, has taken on a five-wave fully completed form. Thus, this section of the trend is presumably completed, and the section of the trend after it can take either the horizontal form of alternating triples. At the same, the three downward waves are already done, and now a new upward section of the trend has begun forming, which will bring the instrument above the peak of the wave 5 in 5. In addition, the option of building a descending structure a-b-c-d-e, which has already been completed, is not completely excluded, and now a new ascending section is being built.
