The wave pattern for the Pound/Dollar instrument looks more convincing after making adjustments, but still, there are several options for the development of events. Thus, it is now impossible to give an unambiguous answer to the question of where the instrument will go in the coming days. I have already said that the wave pattern must be simple and understandable to make money on it. The process of identifying all waves of all scales by itself does not make any sense if it was not possible to make a profit on this counting. With regard to the euro currency, everything is more or less clear now, while the sterling is extremely confusing. Thus, I recommend that you watch the tool for a while to try to weed out at least some of the possible options. It will also be possible to identify the continuation of the construction of the descending set of waves if a successful attempt is made to close below the 38.2% Fibonacci level. But even in this case, a decline in quotes can be identified as a wave e, or maybe as a 3 in 3 wave or c. So the situation is really confusing.
The news background for the Pound/Dollar instrument was very bright yesterday, as the UK released data on GDP, industrial production, and trade balance, while the US released its data on inflation. All of them, to one degree or another, influenced the course of trading. However, they did not clarify the current wave picture at all. Today, there was no economic news in the UK, and in the US, all hopes are connected with the fact that Jerome Powell in his speech will not take a neutral position and remain silent on topics that are now of great interest to the markets.
But there are purely British news topics in the UK that have continued to saturate the editorials of all newspapers for several years now. Of course, this is Brexit, and at this time - the consequences of Brexit. Three and a half months have passed since the separation of Britain and the European Union. During this time, few people in Britain saw the positives from the breakup. On the other hand, no one expected that Great Britain from the first month of "freedom" would heal immediately better than in the bloc. Thus, a recession associated with Brexit is completely normal. Riots in Northern Ireland are abnormal, where the population is dissatisfied with the implementation of the terms of the Brexit agreement and, in general, with life after the break with the EU. At the same time, Boris Johnson urges all Britons to continue wearing masks and comply with all government quarantine requirements.
At this time, the wave pattern is too confused, and I recommend waiting for its clarification so that at least a couple of possible options are eliminated, making it clear in which direction the movement will develop. A failed breakout of the April 12 low indicates that the markets are ready for an upward wave. This can be used. But what will this upward wave be? The composition of the new upward trend, the composition of the downward trend, the composition of the horizontal, is now completely unclear.
The part of the trend, originating on September 23, has taken a five-wave, fully completed form. Thus, this part of the trend is presumably completed, and the decline in quotes may resume as part of the construction of a new downward part of the trend, the first two waves of which have already completed their construction. At the same time, the entire trend segment can be transformed into more complex structures.