The wave counting for the Pound/Dollar instrument continues to look quite complicated due to deep corrective waves as part of the correction. The instrument made a successful attempt to break through the low of the previous waves a and e. Thus, adjustments were made to the wave pattern and now it has acquired the appearance of a downward trend section. Nevertheless, this downward section may already be completed, or it may acquire a much longer appearance.
The picture above shows that the last wave C can already be completed if it has taken a three-wave form. If it takes a five-wave form, then after the completion of the current wave d, the decline in the quotes of the instrument within the wave e may resume. And this wave d can already be completed since last Thursday, the quotes began to move away from the reached highs. If this assumption is correct, then the decline of the instrument will continue with targets located near the minimum of wave c, that is, about 34 figures. A successful attempt to break through the peak of wave b will lead to the need to introduce new refinements to the current wave counting.
The exchange rate of the Pound/Dollar instrument increased by 20 pips on Monday, and the amplitude was again very low. The news background was extremely weak, the markets had nothing to pay attention to during the day. Nevertheless, reports continue to come from Britain that are not directly related to the economy. These reports relate to the same shortage of employees in many areas of the economy.
The Night Time Industry Association (NITA) reports a serious shortage of security guards in night establishments that are designed to ensure security. Pubs and restaurants report a shortage of waiters, cooks, and bartenders. Moreover, there are strict rules in the UK not allowing institutions to open if security conditions or other standards for the number of necessary employees are not met. Therefore, already now many restaurants and night establishments are forced to remain closed or work only a few days a week, which negatively affects their income.
Moreover, on the eve of Christmas, the excitement always increases, the influx of customers increases. Thus, many establishments simply will not be able to cope with it and will also suffer serious losses. Establishments also report serious problems with the supply of products and goods they need to carry out their activities. It is also reported about the high inflation that accompanies the catering sector. Prices are rising to 18% per year, which is much higher than the official inflation in the country, which is at 3.4%.
The wave pattern continues to raise some questions, although it looks quite convincing so far. It received a downward view, but not an impulsive one. The expected wave d has completed its construction, so I advise you to sell the instrument based on the construction of the expected wave e in C with targets located near the level of 1.3270.
The upward section of the trend, which began its construction a couple of months ago, has taken a rather ambiguous form and has already been completed. The construction of the upward trend section has been canceled and now we can assume that on January 6, the construction of a new downward trend section began, which can turn out to be almost any size.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
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