Wave counting analysis:
On February 14, the GBP / USD pair lost another 40 bp. and broke through the minimum of the estimated wave 1, or a. Thus, there were reasons to assume that wave 2, or b, turned out to be very shortened and had already finished its construction. Now, we waited for at least three waves of 2, or b. Practically, things could turn out differently. If this assumption is right, then the decrease of the instrument will continue now within wave 3, or with targets located near the Fibonacci level of 76.4% and below. On the other side, the news background still supports the US dollar, however, there is no encouraging information from the parliament of UK. The immediate members of the European Union also do not please the buyers of the pound with the information about their preparedness to enter into new negotiations with London.
Shopping goals:
1.3033 - 23.6% Fibonacci
Sales targets:
1.2734 - 61.8% Fibonacci
1.2619 - 76.4% Fibonacci
General conclusions and trading recommendations:
The wave pattern expects the construction of a new downward wave. Therefore, now, I recommend selling the instrument again with targets located near the estimated marks of 1.2734 and 1.2619, which equalizes to 61.8% and Fibonacci 76.4%.
