In the most global terms, the construction of an ascending three-wave section of the trend which begins on September 23, may already be completed. At this time, the wave patterns of the EUR/USD and GBP/USD instruments are very similar. For the Euro currency, I assume that the construction of a new downward section of the trend will begin, possibly a three-wave one. The same can be said about the Pound/Dollar instrument. At the same time, I recommend waiting a couple of days for the US election to end and the markets to calm down after a fairly strong and important news background. After that, it may be necessary to make additions to the wave markup and draw new conclusions.

The wave markup on the lower chart does not look more convincing. An unsuccessful attempt to break through the 50.0% Fibonacci level indicates that the markets are not ready for further decline. However, the third wave of the uptrend section now looks quite convincing and complete, and the minimum of the expected wave 2 or b has not yet been broken by the markets. So the situation is confusing right now. I'm hoping for a correlation with the Euro/Dollar instrument which has a very high probability of building a new three-wave section of the trend. Thus, a successful attempt to break through the 50.0% level will indicate that the instrument is ready for further decline.

While the vote count continues in America, the next stage of the negotiation process between Britain and the European Union has ended again in nothing. Last night, both chief negotiators said that significant differences remain between the parties on the most important issues. David Frost also noted that there is some progress, but it is clearly not enough to conclude a trade agreement. Thus, it is unlikely that the parties will reach a consensus before November 15, so I do not expect any positive news from London or Brussels. Consequently, the demand for the British in the near future may significantly decrease, since the probability of an agreement between the EU and the UK is negligible.

Meanwhile, the results of the Bank of England's meeting were summed up today. The British Central Bank decided to expand its stimulus program by 150 billion pounds, although the markets were waiting for only 100 additional billion. The key rate remained unchanged. Strictly speaking, the expansion of the QE program is a bearish factor but the Briton on the morning of November 5, on the contrary, is in demand. And this evening, the results of the fed meeting will also be summed up. During the day, there will be speeches by Bank of England Governor Andrew Bailey, as well as fed Chairman Jerome Powell. Well today, I am waiting for the final results of voting for the President in the United States. So, there will be a lot of different news and events that should affect the movement of the Pound/Dollar instrument.

General conclusions and recommendations:

The Pound-Dollar instrument presumably completed the construction of an upward trend section. However, I do not recommend selling the instrument until a successful attempt to break the 1.2860 mark, which corresponds to 50.0% of the Fibonacci level. If a successful breakout attempt takes place, I recommend selling with targets located near the calculated marks of 1.2719 and 1.2543, which is equal to 61.8% and 76.4% for Fibonacci.