The wave picture for the Pound/Dollar instrument looks more convincing after making adjustments. The increase in quotes of the last days suggested that the downward trend section, which began on February 24, has already been completed and has taken on a three-wave form. However, a new decline in quotes in recent days suggests that the downward wave 3 or c will take on a pronounced five-wave structure and, accordingly, will take on a more extended form. However, the current wave structure can take on other forms. For example, the entire section of the trend that starts on February 24 may take the structure a-b-c-d-e. If so, then the construction of the downward wave e has now begun, which may complete its construction near the 1.3456 mark, which corresponds to 50.0% Fibonacci. There are a lot of possible variants of the pound wave pattern, which significantly complicates the process of its development. Unfortunately, it is not very clear at present. Note that wave counting should be simple and understandable so that you can work with it and make money on it.
The news background for the sterling is very weak this week. There are only 2 reports planned for the five trading days of the week in the UK, which at least theoretically could influence the mood of the markets. Both have already been released, these are the indices of business activity in the service and construction sectors. The latter came out today and significantly exceeded the forecasts and expectations of the markets, amounting to 61.7 points. Thus, the beginning of a decline in the instrument quotes in the first half of today was quickly replaced by an increase in quotes. However, there were not enough sellers for a long time, and having met a serious obstacle near the level of 1.3720, the "bearish" impulse dried up. More interesting news concerns the health sector in the UK. The 4-step plan for the country's exit from the lockdown continues to be implemented, vaccination continues at a high rate and only problems with the AstraZeneca vaccine slightly overshadow the high achievements of British doctors and pharmacists. However, this news does not have much impact on the pound sterling. In recent days, it has been losing market demand, although at the same time the euro is gaining it. Therefore, I cannot conclude that the achievements of British doctors have any effect on the Pound/Dollar instrument. Thus, I recommend that you now be attentive to the wave counting, which provides at least a more or less clear picture of what is happening and predicts where the instrument may move in the coming days.
At this time, I still expect the formation of a downward wave of 3 or c. Thus, I recommend resuming selling the instrument according to the signals of the MACD indicator "down" with targets located near the 35th figure. The second successful attempt to break through the 1.3872 mark, which equates to 23.6% Fibonacci, will most likely require adjustments and additions to the current wave counting and will cancel the option with a decline in instrument quotes.
The part of the trend, originating on September 23, took a five-wave, fully completed form. Thus, this section of the trend is presumably completed, and the decline in quotes may resume as part of the construction of a new downward section of the trend, the first two waves of which have already completed their construction. However, the downward trend section may turn out to be shortened, and in this case, it has already completed its construction
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
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