Wave counting analysis:
On March 13, the GBP / USD pair rose by 250 bp, which resulted from two votes gained from the UK parliament. First, the parliament rejected the agreement reached by Theresa May with the European Union, and then followed by the variant of the “tough” Brexit scenario. It is difficult to call such a reaction of the market logical, but absolutely all traders expected strong movements in the instrument. Yesterday, these movements led for a need to clarify the current wave marking. Today, another parliamentary vote will be held on postponing the exit from the EU, and thus, the couple might end up with strong movements in different directions. So far, based on the wave pattern, we can expect an increase in the pair within wave c in Y.
1.3350 – 100.0% Fibonacci
1.3454 – 127.2% Fibonacci
1.2961 – 0.0% Fibonacci
General conclusions and trading recommendations:
The wave pattern is changed and now involves the construction of an upward wave with targets located near the calculated marks of 1.3350 and 1.3454, which corresponds to 100.0% and 127.2% Fibonacci. However, after today’s vote in the British Parliament, strong movements of the instrument can be observed, which can lead for the need to clarify on the wave marking.
The material has been provided by InstaForex Company – www.instaforex.com