Wave counting analysis:
On April 19, the pair GBP/USD gained only a few base points and remained near the bottom forming a narrowing triangle of the line. A highly anticipated scenario. Market activity is now almost zero, there is no news, and the triangle itself does not yet give grounds for more active behavior. Everyone is waiting for the breakthrough of which line the tool will perform, as well as news. I believe that in case of a break of the level of 0.0% on Fibonacci, the pair can return to the execution of the option with the construction of a downward wave. And the probability of this will be high. I also note the fact that the Conservative Party may soon announce a new vote of no confidence to Theresa May and ask her to resign. And Theresa May's resignation will definitely not have a positive impact on the pound. Therefore, we are waiting for the development of events.
1.3350 - 100.0% Fibonacci
1.3454 - 127.2% Fibonacci
1.2961 - 0.0% Fibonacci
General conclusions and trading recommendations:
The wave pattern still involves the construction of a downward trend. And the markets still can not withdraw a pair from the triangle, so the trades are held with a small amplitude. Accordingly, I recommend expecting a pair out of the triangle to determine the market mood for the near future. A successful attempt to break the 0.0% mark on Fibonacci will be a strong signal to sell the pair GBP/USD.The material has been provided by InstaForex Company - www.instaforex.com