The quotes of the GBP/USD pair continue to depart from last week's reached highs, but this cannot be actually called a movement, since the quotes have been standing in one place for several days. It can be assumed that the markets are anticipating the results of the Fed meeting and do not want to force events ahead of time, especially since they have nothing more to wait for anyway. Nevertheless, the wave pattern simply paused at this time. Although it still exists, this does not mean that the instrument cannot move along the 23.6% Fibonacci level like this for as long as it wants. A new triple of waves downwards is likely to form and assume that the current wave layout in reality is exactly as I presented it in the upper chart. However, there are also other possible options. For example, the minima of waves c and 2 or b coincide point to point, so wave 2 or b can also be wave e. In this case, the trend section that started on February 23 took the form a-b-c-d-e, and after its completion, we saw only the first and second waves of a new upward trend section. In this case, we should expect a resumption of the growth in the quotes of the instrument.
On Wednesday, the news background for the GBP/USD pair was not observed. There will also be no news or economic reports at all in the UK this week. The only news that came from Britain is a message from Boris Johnson, who said that so far, 25% of adults in the country have received both doses of the vaccine, which are necessary for the formation of immunity. This is good news, but it showed that the market ignored this. This is not surprising, since the markets are unlikely to react to every message like this. Therefore, everything comes down to the Fed meeting, its results and a press conference with Jerome Powell. For the EUR/USD pair, we believed that the markets are unlikely to expect anything specific from Jerome Powell, although the latest surveys of economists still show that they are waiting for hints on the timing of the end of the QE program from the Fed, which currently amounts to $120 billion a month. However, Powell has repeatedly said that this program will continue to operate, so it is unlikely that he will make statements about its imminent completion. The Fed chairman is also unlikely to make promises for six months ahead. Thus, the said expected meeting will be boring and without good results.
At this time, the wave pattern has slightly cleared up, so it is now suggested to sell the instrument for each MACD downward signal, counting on the formation of a new three downward waves. However, the wave pattern still does not look fully clear and may still need some additions and adjustments.
The part of the trend, which originated on September 23, has taken on a five-wave fully completed form. Thus, this section of the trend is presumably completed, and the section of the trend after it can take either the horizontal form of alternating triples. At the same, the three downward waves are already done, and now a new upward section of the trend has begun forming, which will bring the instrument above the peak of the wave 5 in 5. In addition, the option of building a downward pattern a-b-c-d-e, which has been fully done, is not completely excluded, and now a new ascending section is being built.
