Wave counting analysis:
On February 27, the GBP / USD pair reached 127.2% in Fibonacci, gaining another 60 bp at the end of the day. Thus, the entire upward set of waves, which began its construction on January 3, took the form of an expanding triangle. Once again, according to Fibonacci, the unsuccessful attempt to break through the level of 127.2% indicates that the pair is ready to complete not only the rising wave, but also the entire trend section. However, the news background, which unexpectedly supporting the pound in recent days, can continue and further cause demand for the pound. At the same time, a rebound from the level of 127.2% in itself is a good opportunity to play for a fall.
1.3333 - 127.2% Fibonacci
1.3489 - 161.8% Fibonacci
1.2734 - 61.8% Fibonacci
1.2619 - 76.4% Fibonacci
General conclusions and trading recommendations:
The wave pattern still assumes the completion of the construction of the ascending wave and the transition to the construction of a downward set of waves. I now recommend waiting for a clear signal about the completion of the rising wave e, since the current news background and its interpretation by the market can continue to support the pound sterling. An unsuccessful attempt to break through the level of 127.2% might be such a signal, so small sales are now expedient with a protective order above 1.3340.The material has been provided by InstaForex Company - www.instaforex.com