The wave pattern of the GBP/USD pair looks to have cleared up. The latest increase in quotes resulted in an update of the high of the expected wave e, so now, this wave no longer looks like an e. In this case, the entire wave pattern may need adjustments and additions soon, but it still remains the same at the moment. It was previously mentioned that the wave pattern does not look unambiguous and can develop in several ways at once. The instrument may have built a downward trend section a-b-c-d-e in February-March of this year, after which a new impulse section of the trend began to form, and at this time, its third wave is being built. However, even in this case, the internal wave structure does not look clear. Thus, we continue to adhere to the previous pattern on the chart, but it should be noted that it can change at any time. A successful attempt to break through the level of 1.4239 may indicate that the markets are ready to buy the US dollar again, but with the current pattern, this factor does not have a serious impact on the prospects of the instrument.
The news background for the pound was quite favorable on Tuesday. First, it was mentioned that the UK lifted part of the quarantine measures this Monday, which will contribute to the growth of economic and business activity, as well as economic growth. Secondly, the economic reports that were released also showed that Britain's economic situation is improving. In particular, the unemployment rate declined from 4.9% to 4.8%. Average earnings also rose by 4.0% including premiums and 4.6% excluding it, while the number of applications for unemployment benefits declined by 15.1 thousand against the forecasted growth of by 25.6 thousand, as the markets expected. However, these statistics might not be the reason for the continued high demand of the pound, since the euro was currently rising, and the pound has been growing for quite some time without any statistics. In any case, these reports had an additional impact on this instrument, which only helped the British currency to further strengthen its positions. Unfortunately, the inflation data released on Wednesday was disappointing. Now, the Governor of the Bank of England, Andrew Bailey, as well as Deputy Governors Ben Broadbent and Sir David Ramsden, are expected to make a speech. Here, the market will most likely learn some new information, which will also affect the exchange rate of this instrument. Overall, the pound continues to have great prospects, since the wave pattern, although not very clear on a smaller scale, clearly shows the formation of a new upward trend on a bigger scale.
The wave pattern continues to be very confusing, so it is suggested to wait for it to clear up. There are at least several options for wave pattern, each of which can be implemented in the coming weeks. Now, the upward wave continues to form, but its internal wave structure does not allow making an unambiguous conclusion about how extended it will be and where it can end.
The upward section of the trend, which started to form several months ago, is taking on a quite unclear form. It was mentioned above that several wave patterns options are possible at once. Unfortunately, different options offer different further developments. Therefore, it may be necessary to wait for some time for the current wave pattern to slightly clear up.
