Wave counting analysis:
On February 8, the GBP / USD pair lost about 5 bp. during the whole day. Despite such a small amplitude, the pair remains within the framework of building the proposed first wave of a new descending trend segment. Moreover, the internal wave structure of this wave involves the construction of the final fifth. If this is indeed the case, the instrument will continue to decline today or tomorrow, with targets located near the 50.0% Fibonacci level. On the other hand, there is no news on Brexit, at least important. Nevertheless, they can come unexpectedly and strongly influence the wave marking. At the moment, we can state the refusal of the European Union to enter into new negotiations with Theresa May.
1.3216 – 0.0% Fibonacci (formal goal)
1.2827 – 50.0% Fibonacci
1.2734 – 61.8% Fibonacci
General conclusions and trading recommendations:
The wave pattern involves the construction of the first wave of the downward trend section in the near future. Thus, I recommend to remain in sales with targets located near the estimated marks of 1.2827 and 1.2734, which corresponds to 50.0% and 61.8% in Fibonacci. However, an unsuccessful attempt to break through one mark or another can lead to the completion of a downward wave.
The material has been provided by InstaForex Company – www.instaforex.com