Wave counting analysis:
On March 21, the GBP / USD pair fell by 80 basis points (bp). This is the general reaction to the meetings of the Fed and the Bank of England, as well as to the agreed transfer of Brexit from March 29 to May 22. The wave pattern due to the mass of events, mainly around Brexit, is confusing, but it can get an even more complex as it looks. Since, as before, no one knows how the three-year epic will end with the release of Great Britain from the jurisdiction of Brussels. After all, everything still depends on the British Parliament, which must accept agreements with the EU, which it has already blocked twice. Thus, now, I recommend caution first.
1.3350 - 100.0% Fibonacci
1.3454 - 127.2% Fibonacci
1.2961 - 0.0% Fibonacci
General conclusions and trading recommendations:
The wave pattern allows for the construction of an upward wave with targets located near the estimated marks of 1.3350 and 1.3454, which corresponds to 100.0% and 127.2% of Fibonacci. However, the current wave counting is very confusing because of the ambiguous news background. As long as there is no clarity on the Brexit issue, the tool can continue to build ambiguous wave structures.The material has been provided by InstaForex Company - www.instaforex.com