Current wave patterns suggest that the upward trend is complete, especially since the recent breakout resulted in a complication in the structure of wave Z. Thus, a decline in quotes is soon to occur, targeting the 27th and 28th figures, thereby constructing a new downward trend.
A closer look at the wave patterns show that wave Z was completed due to the movement away from the highs last Friday. However, demand for the dollar has been extremely low for the past few months, and if it continues to be so, then wave 5 may take on an even more complex and extended form. Hence, until the quote breaks out of the low of wave 4, the upward trend may still resume at any time.
In another note, the pound decreased slightly due to the absence of macroeconomic reports yesterday, but this does not confirm in any way the next movement of the GBP / USD pair in the market. Indeed, the upward trend may be completed, but the downward move may turn out to be just a correction, especially since the dip seems to be shallow and may take on the form of a double or triple zigzag.
In addition, the pound is unlikely to receive strong market support in the near future, as it has already grown quite strongly due to negative news in the United States. Thus, if another cataclysm occurs in the US, with which the situation continues to deteriorate, the pound may resume its rise, thereby complicating the upward trend.
General conclusions and recommendations:
Since wave Z could be completed at any moment, buy positions in the GBP / USD pair is not recommended. However, sell transactions do not look very attractive either, especially since the US dollar is growing with great difficulty. Demand for it remains very low, so the quotes are having a hard time overcoming the low of the previous wave 4.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
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