On March 5, the GBP / USD pair did not lose a single bp, although it lost about 70 bp from the opening level during the day. However, the whole wave pattern still looks like the end of the uptrend trend and the transition to the construction of a downward trend. If this is indeed the case, the decrease in quotations will continue with targets located at about 38.2% and 50.0% on the older Fibonacci grid. The news background for the pound sterling remains unfavorable, although there have been no new negative news in recent days. A week later, several votes will be held in parliament. After which, it will become clear what the UK is facing in the coming months: Brexit or new negotiations with the EU.
1.3348 - 0.0% Fibonacci
1.001 - 38.2% Fibonacci
1.2891 - 50.0% Fibonacci
General conclusions and trading recommendations:
The wave pattern still assumes the construction of a downward set of waves. Therefore, sales are now expedient with targets at 1.00100 and 1.2891, which equates to 38.2% and 50.0% Fibonacci and a protective order above 1.3340. Larger sales are recommended when receiving negative news for the pound and with the development of a downward trend.The material has been provided by InstaForex Company - www.instaforex.com