Wave counting analysis:
On April 9, the GBP / USD pair lost about 10 bp. and remains within the narrowing triangle. I still expect the pair to go beyond this triangle to determine the direction of movement for the near future. Today, the tool will have enough opportunities to fulfill this option, since the GDP will be released in the UK today. Meanwhile, inflation is published in the United States, and the EU summit will be held, wherein the issue of the Brexit postponement will be decided. Based on the current wave marking, it is more preferable to build a downward wave. However, everything will depend on the news background. A variant with a successful attempt to break through the upper line of the triangle, which will lead to the complication of the entire wave marking, is not excluded.
1.3350 - 100.0% Fibonacci
1.3454 - 127.2% Fibonacci
1.2961 - 0.0% Fibonacci
General conclusions and trading recommendations:
The wave pattern involves the construction of a downward trend. However, as long as the pair does not break through one of the lines of the triangle, the trading will take place inside it. Today, the news background should help to get out of the triangle, and the breakthrough of one of its lines will be a strong signal to buy or sell.The material has been provided by InstaForex Company - www.instaforex.com