Wave counting analysis:
On March 29, the GBP/USD pair made an impressive breakthrough, both up and down, but declined by just 15 bp at the end of the day. All news of the pair are associated only with Brexit. For the third time, the Parliament rejected Theresa May's agreement on withdrawal from the EU but did not offer anything in return. Thus, it is not clear how this whole mess will end. So far, everything is going to ensure that the UK will leave the EU without any agreements on April 12. Such an agreement exists with the European Union. But until April 12, the parties may once again negotiate and transfer Brexit to a later date. The wave counting still involves the construction of a downward wave 3 with targets located below 1.2950.
1.3350 - 100.0% Fibonacci
1.3454 - 127.2% Fibonacci
1.2961 - 0.0% Fibonacci
General conclusions and trading recommendations:
The wave pattern assumes the construction of a downward wave 3. The news background still remains on the side of the dollar, which implies a further decline in the pair. However, the Brexit news comes in with frightening regularity and any one of them can trigger movements around the instrument. Thus, wave counting may require additions and corrections. With the breakthrough of the minimum of wave 1, the downward confidence in the campaign down will be intensified.The material has been provided by InstaForex Company - www.instaforex.com