The section of the trend, which originates on September 23, took a five-wave fully equipped form. However, the wave marking can be complicated any number of times. The increase in the quotes of the instrument continues, so the expected wave 5-5 can also take a five-wave form. If this assumption is correct, then the increase in quotes will continue with targets located up to the 40th figure.
On the lower chart, wave marking also suffered certain changes. The assumed wave 5 has already taken a more extended form, and if the current wave marking is correct, then wave 3-5 is currently being built. An unsuccessful attempt to break through the 127.2% Fibonacci level indicates a possible construction of an internal correction wave, however, the entire wave picture has not yet taken a complete form. Thus, I expect a successful attempt to break through the 37th figure and continue to increase the pound/dollar instrument.
Recent years for the UK are associated with setbacks and disappointments. Brexit and the preparations for it have already sucked quite a lot of blood out of the UK's circulatory system. The Kingdom's economy is weakened by Brexit and a pandemic. And as soon as positive news finally appeared for the country (a trade deal with the European Union), fate struck a new blow. This time, a new strain of COVID-2019 was discovered in the UK, which is 50-70% more contagious, and the number of diseases jumped immediately from 20,000 per day to 60,000. Thus, the government led by Boris Johnson simply had no other choice but to introduce a new quarantine, which begins to operate today. In the UK, schools, all shops that do not sell necessities, universities, cafes, gyms, and so on are being closed from today. Britons are only allowed to leave the house for 1 hour a day to buy food or exercise. The introduction of a new "lockdown" was recommended by the chief health officer of England, Chris Whitty, as "if this is not done now, the National Health Service will be under great pressure". "Our hospitals are under the greatest pressure because of the coronavirus since the beginning of the pandemic," said British Prime Minister Boris Johnson. Thus, in the next 6 weeks, England will be closed for quarantine, which is unlikely to have a positive impact on its economy. I expect it to be reduced again. Consequently, the British may also be under market pressure. However, unfortunately, the demand for the American dollar remains extremely low, which can once again save the pound from a completely natural decline.
General conclusions and recommendations:
The pound/dollar instrument resumed the construction of an upward trend section. Thus, I currently recommend buying the pound/dollar instrument after a successful attempt to break through the 37th figure with targets located near the 40th figure, within the expected wave 3,5,5 of the upward trend section. You can also buy the British dollar on the new signals of the MACD "up". But still, it should be understood that the upward section of the trend cannot be extended indefinitely. And the closer it gets to completion, the more dangerous it is to buy the pound.
