Wave counting analysis:
On May 14, the GBP / USD pair lost another 55 basis points. Yesterday in the UK, reports were issued on unemployment (down to 3.8%) and on changes in average wages (a rise of 3.2%). The unemployment outlook was worse, and the wage was better. Thus, the overall news background was neutral for the pound. Nevertheless, the markets continued to sell the pound, which once again makes us pay attention to Brexit. According to the latest information, the UK will take part in the elections to the European Parliament despite the fact that in the coming months, it wants to leave the EU. Theresa May determined the new date of voting for her Brexit project – June 3. A pound sterling reacts to this by a fall, and a successful attempt to break through the minimum of the wave y will indicate that the pair is ready for a new decline. However, the wave pattern remains extremely ambiguous and confusing.
1.3182 – 61.8% Fibonacci
1,3259 – 76.4% Fibonacci
1.2867 – 0.0% Fibonacci
General conclusions and trading recommendations:
Wave picture suggests a continuation of the pair ‘s decline. Thus, now, I recommend selling the pair with targets located around 1.2867, which corresponds to 0.0% Fibonacci, and you can save if you successfully try to break through the sale. Nevertheless, the wave pattern of the previous weeks is characterized by frequent and deep correctional waves- you should be careful with the MACD reversals.
The material has been provided by InstaForex Company – www.instaforex.com