The wave pattern for the Pound/Dollar instrument cleared up a little on Monday. The GBP quotes began a new rise and exceeded the peak of the previous wave, thus showing the construction of a new upward set of waves, which began on March 25. So far, everything looks exactly like this. Then, the part of the trend, which began on February 24, took a three-wave form and is already completed. If this assumption is correct, then the instrument quotes will continue to rise within wave 3 or from a new upward trend section with targets ranging between the current value and the 42nd figure. The current trend can be impulsive, that is, five-wave, but it can also take on a more complex form of alternating triplets. Therefore, now, in any case, I expect the construction of an upward wave, but then I will need to look at how the instrument will behave in order to understand what awaits us next: a horizontal trend segment or an upward one?
The news background for the Pound/Dollar instrument was very weak on Thursday and Friday. All the news that was supposed to affect the markets and their mood came from the United States and, as I said in the euro review, did not affect it. And in Britain, there was no economic data that could be of interest to traders. But there was news of a different nature. In Northern Ireland, riots and protests have been going on for two weeks over the status of the border with the Republic of Ireland. So far, they are relatively peaceful, and the inhabitants of the island are dissatisfied with the implementation of the Brexit agreement and demand its revision. London is still inactive and hopes that the situation will resolve itself. The media reported that the inhabitants of the two countries do not want a border to appear between them, either by land or by sea. Several groups at once, who hold different religions and political views, organize protests. Some want to see a United Ireland, which does not allow the emergence of any borders between countries. Others want to stay in the UK. There is a clash of churches, the interests of various groups of people, which in the last century for many decades was accompanied by murders, terrorist attacks, and clashes. In the near future, this issue should be resolved not only by the governments of Ireland and Northern Ireland but also by London. Otherwise, the island of Ireland may once again begin to "blaze with fire." So far, this news does not put pressure on the sterling. However, in the future, they may begin to provide.
At this time, the wave pattern has cleared up a little, so now I recommend buying an instrument for each MACD upward signal, hoping to build a third wave as part of a new upward trend section. The wave counting still does not look completely unambiguous and may require additions and adjustments.
The part of the trend, originating on September 23, has taken on a five-wave fully completed form. Thus, this part of the trend is supposedly completed, and the part of the trend after it can take either a horizontal form of alternating triplets, or three downward waves have already been completed, and now the construction of a new upward trend has begun, which will bring the instrument above the peak of wave 5 in 5.