The wave pattern of the upward trend is actually completed already, but the recent situation in the market, that is, high demand for pound and weak demand for dollar, has led to a more complicated wave structure in the chart. Thus, Wave Z can become even more complex, and it will adjust depending on dollar demand in the market. If demand for the dollar continues to decrease in the near future, price will continue to rise up to the 40th figure.
However, if we take a closer look at the current wave pattern, we will see that wave Z has already significantly lengthened in terms of structure, as was wave 4, which has taken the form of a triangle. In addition, the GBP/USD pair has successfully broken through the 200.0% Fibonacci level, which indicates that the market is ready for long positions with targets near the 261.8% and 323.6% Fibonacci levels.
In another note, the latest news in the United Kingdom centered on the failed negotiations between London and Brussels, during which EU officials have accused London of not wanting to compromise with regards to Brexit. Nonetheless, the pound remains trading upwards in the market, and this is largely due to weaker demand for the US dollar caused by much bigger problems in the United States.
General conclusions and recommendations:
Wave Z continues to form in the GBP/USD pair, thus, long positions to 1.3709 and 1.4055, which corresponds to 261.8% and 323.6% Fibonacci, are suggested.
