The wave structure of the upward movement trend section has again assumed a complete form. Wave Z looks quite complete, so the entire upward section of the trend can be completed and the tool in this case will move to building a new downward section of the trend with the first targets located around 25 and 27 figures. Much will depend on the news background. In particular, what form the new downtrend will take. The US dollar demand has been extremely low in recent months. If it continues, we will see the construction of a triangle or similar non-pulse wave structure.
However, based on the closer examination of the current wave pattern wave Z is more complicated. The wave 4 in C in Z took the form of a triangle. However, the current wave pattern suggests the completion of the construction of the uptrend section. So the working option now is to build a downtrend wave, the first in the new downtrend.
The news background from the UK over the past week has been contradictory but I believe that the decline in the British dollar is ultimately fair. After all, the wave marking has long predicted the construction of a downward wave and as per the news, British remain quite weak. The greater weakness of the American news background has caused a fairly strong increase in the British dollar for the past months. However, this cannot go on forever. Brexit negotiations between London and Brussels once again ended in nothing. Michel Barnier said that he is concerned and disappointed with London's position. Markets continue to wonder how much longer these negotiations will continue given that no progress has been made for a long time. It's already September now. When the negotiations began last March, few people believed that an agreement would eventually be reached. Almost all analysts cited the example of an agreement with Australia or Canada that the parties had been working on for years. Boris Johnson and the UK wanted to agree in an agreement of 6-7 months, which will be beneficial to them in the first place. And as practice shows, London does not intend to give in to the most important issues. So I don't understand why we should continue these negotiations at all. The Briton may fall into a new downward trend due to unsuccessful negotiations, as the absence of an agreement will certainly have a negative impact on the British economy. The worse state of the American economy can only save the British from a new strong decline in the coming months. I don't expect any important news or economic reports on Monday.
General conclusions and recommendations:
The Pound-Dollar instrument has presumably completed the construction of an upward wave Z. Thus, I would recommend now selling the instrument with targets located near the 1.3158 and 1.2960 marks, which corresponds to 161.8% and 127.2% for Fibonacci. The upward section of the trend may take a more complex form but you need to wait for a successful attempt to break the current maximum of the wave 5 in C in Z.
