Wave counting analysis:
On February 22, the GBP / USD pair gained about 15 bp. Nevertheless, there are still more grounds for assuming wave 2 completion. Until a successful attempt to break through the level of 76.4% Fibonacci, the pair retains chances of building a new descending wave 3 with targets located around 1.2770. Meanwhile, the news background for the pair GBP / USD can not be called positive. Theresa May continues to drag out time, postponed the voting date in parliament for March 12, and continues negotiations with the European Union, which only recently disowned these negotiations as he could. In fact, market participants are in no way able to determine whether there is really progress in the negotiations, one that suits the parliament in the final vote, or there is nothing like that.
1.3109 - 76.4% Fibonacci
1.2734 - 61.8% Fibonacci
1.2619 - 76.4% Fibonacci
General conclusions and trading recommendations:
The wave pattern still assumes the construction of a new downward wave. Thus, now, I recommend selling the pair with targets located near the estimated marks of 1.2826 and 1.2734, which equates to 50.0% and 61.8% Fibonacci. A successful attempt to break through the level of 76.4% will indicate that the pair is ready for a raise and will break the current wave marking.The material has been provided by InstaForex Company - www.instaforex.com