Wave analysis of GBP / USD for May 6. The pound is growing, but has no news support.
May 6, 2019 10:21 am
Wave counting analysis:
On May 3, the GBP / USD pair unexpectedly gained about 140 bp, which completely did not correspond to the nature of the news received on Friday, as well as the events in the UK on Saturday and Sunday. What happened is that the Conservative Party, whose leader is Theresa May, lost in the local elections in the UK, and negotiations with the Labor Party. The subject of which is the Brexit agreement, which cannot get enough votes in the parliament, may come to a dead end. Nevertheless, the pound sterling has grown, and the wave pattern is confused. Despite that, I still expect the construction of the downward of the trend, as the news background is clearly not in favor of the pound. But for now, it is necessary to wait first for the signal from the MACD (turn down), and secondly – signs of completion of the construction of the ascending set of waves, which takes its beginning last April 25.
Purchase goals:
1.3182 – 61.8% Fibonacci
1,3259 – 76.4% Fibonacci
Sales targets:
1.2867 – 0.0% Fibonacci
General conclusions and trading recommendations:
The wave pattern still suggests the construction of the descending trend section. But now, the upward trend has clearly begun. Therefore, I do not recommend buying a pair, as the instrument does not have news support, and there are constantly negative messages from the UK. However, it is seen that the increase in the instrument can be completed around the estimated marks of 61.8% and 76.4% Fibonacci. Thus, I recommend to expect the completion of the increase and plan new sales.
The material has been provided by InstaForex Company – www.instaforex.com
Wave counting analysis:
On May 3, the GBP / USD pair unexpectedly gained about 140 bp, which completely did not correspond to the nature of the news received on Friday, as well as the events in the UK on Saturday and Sunday. What happened is that the Conservative Party, whose leader is Theresa May, lost in the local elections in the UK, and negotiations with the Labor Party. The subject of which is the Brexit agreement, which cannot get enough votes in the parliament, may come to a dead end. Nevertheless, the pound sterling has grown, and the wave pattern is confused. Despite that, I still expect the construction of the downward of the trend, as the news background is clearly not in favor of the pound. But for now, it is necessary to wait first for the signal from the MACD (turn down), and secondly – signs of completion of the construction of the ascending set of waves, which takes its beginning last April 25.
Purchase goals:
1.3182 – 61.8% Fibonacci
1,3259 – 76.4% Fibonacci
Sales targets:
1.2867 – 0.0% Fibonacci
General conclusions and trading recommendations:
The wave pattern still suggests the construction of the descending trend section. But now, the upward trend has clearly begun. Therefore, I do not recommend buying a pair, as the instrument does not have news support, and there are constantly negative messages from the UK. However, it is seen that the increase in the instrument can be completed around the estimated marks of 61.8% and 76.4% Fibonacci. Thus, I recommend to expect the completion of the increase and plan new sales.
The material has been provided by InstaForex Company – www.instaforex.com
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