For the pound/dollar instrument, the wave markup continues to look quite convincing. In the last few weeks, the instrument has continued to build an upward wave, which is currently interpreted as wave D of the downward trend segment. If the current wave marking is correct, then the decline in quotes will resume after the completion of this wave, which could have already happened last Friday. Thus, the entire downward section of the trend may take on an even more extended form, and at this time the instrument has presumably started building the wave E. However, wave D can still take a five-wave form, then it will need to be recognized as an impulse, and in this case, it will no longer be able to be a corrective wave D, and the entire wave pattern will require additions. At the moment, only three waves are visible inside it, which can be a-b-c series. A successful attempt to break through the 1.3644 mark, which corresponds to 38.2% Fibonacci, indicates that the markets are ready to sell the British. I also consider it important that the Euro/Dollar instrument is also now ready to build a new downward wave. Thus, there should be no conflict between these two tools.
The next meeting of the UK Parliament almost ended in a scandal.
The exchange rate of the pound/dollar instrument changed one way or the other during January 20. The amplitude during the day was only 20 basis points. Thus, the markets had a very boring day in terms of possible price changes of the instrument. There was no news of the economic plan in the UK on Thursday. In America, there was only one report on applications for unemployment benefits, the number of which jumped sharply to 286 thousand. It was thanks to this report that the demand for the US currency decreased slightly in the second half of the days. However, it still did not lead to serious price changes. Meanwhile, in the British Parliament, Boris Johnson was once again called upon to resign. At the same time, it was no longer representatives of the Labor Party, which is considered the main opposition force of the Tories, but representatives of the Conservative Party. During Boris Johnson's speech in parliament, a cry of "For God's sake, go away!" was heard. The Prime Minister was accused once again of holding various kinds of parties in the midst of the quarantine period and called on to take responsibility for what happened for himself. However, Johnson replied that he takes responsibility for himself, but at the same time he is not going to resign. The Prime Minister continues to insist that the meetings in Downing Street at the height of the pandemic and the actions of the "lockdowns" were of working nature. "If you have a drink, food, if there are people around you who behave at ease, this is a party, not a working meeting," said Roger Gale, a member of the Conservative Party. Labor leader Keir Starmer, in turn, said that last year Queen Elizabeth II sat alone after her husband, with whom they had been married for 73 years, died. She adhered to the established rules in the state, but for some reason, Boris Johnson did not do this.
General conclusions.
The wave pattern of the pound/dollar instrument assumes the completion of the construction of the proposed wave D. Since this wave has not yet taken a five-wave form, I expect that a new descending wave E will be built. A successful attempt to break through the 1.3641 mark now allows you to sell the instrument with targets located near the estimated 1.3458 and 1.3271 marks, which corresponds to 50.0% and 61.8% Fibonacci.
