The wave pattern for the Pound/Dollar instrument looks already convincing after making adjustments. The increase in quotes of the last days suggested that the downward trend section, which began on February 24, has already been completed and has taken on a three-wave form. However, a new decline in quotes yesterday and today also suggests that the downward wave 3 or c will take on a pronounced five-wave structure and, accordingly, will take on a more extended form. However, the current wave structure can take on other forms. For example, the entire section of the trend starting on February 24 may assume the structure a-b-c-d-e. If so, then the construction of the downward wave e has now begun. In general, there are a lot of possible options for the sterling, which significantly complicates the process of working out the wave pattern. Unfortunately, it is not very clear now. Note that wave counting should be simple and understandable to make money on it.
The news background for the sterling on Monday and Tuesday was rather weak. Yesterday, there was not a single important report or news at all. Today, the UK's index of business activity in the service sector was released, which slightly decreased to 56.3 points, but still turned out to be at a very decent level. In the evening, the Fed protocol will be published, but traders do not expect much from this document, since it usually simply repeats everything said during the summing up of the meeting itself and the press conference with Jerome Powell.
At the same time, a representative of the European Medicines Agency (EMA) said that there is indeed a connection between the use of the AstraZeneca vaccine and the occurrence of blood clots. According to the head of the vaccination department, Marco Cavaleri, "the connection does exist, and it is obvious." According to the official, so far no one knows what exactly causes such a reaction in the body, and this remains to be understood. Cavaleri also said that the number of young people who were diagnosed with cerebral thrombosis with platelet deficiency after using the vaccine exceeded the expectations of doctors. Let me remind you that so far the EMA has recommended the AstraZeneca vaccine as safe, and the UK has denied a link between its use and the occurrence of blood clots, stating that there is no evidence.
At this time, I am still looking to the formation of a downward wave 3 or c. Thus, I recommend resuming selling the instrument according to the signals of the MACD indicator "down" with targets located near the 35th figure. The second successful attempt to break through the 1.3872 mark, which equates to 23.6% Fibonacci, will most likely require adjustments and additions to the current wave counting and will cancel the option with a decline in instrument quotes.
The part of the trend, originating on September 23, has taken on a five-wave fully completed form. Thus, this section of the trend is presumably completed, and the decline in quotes may resume as part of the construction of a new downward trend section, the first two waves of which have already completed their construction. However, the downward trend may turn out to be shortened, and in this case, it has already completed its construction.