Wave counting analysis:
On March 14, the GBP/USD pair fell by 50 basis points. Thus, the series of overly active days has ended. Yesterday, the UK Parliament approved Brexit's transfer for several months and rejected the proposal for a second referendum. Hereinafter, the British government will probably try to find new points of contact with the European Union in the next few months and once again try to agree on the Brexit terms, which would arrange the parliament. Will it be possible to accomplish this? What will happen if it fails? While it is difficult to say, the market is most pleased that there will not be a "hard" Brexit scenario, at least for now. With an estimated wave in c, c, c, and in Y, it can be completed near the 100.0% Fibonacci level after an unsuccessful attempt to break. However, a breakthrough can still happen with repeated testing of the level.
1.3350 - 100.0% Fibonacci
1.3454 - 127.2% Fibonacci
1.2961 - 0.0% Fibonacci
General conclusions and trading recommendations:
The wave pattern has changed and now involves the formation of an upward wave with targets located near the calculated marks of 1.3350 and 1.3454, which corresponds to 100.0% and 127.2% Fibonacci. However, there is also a possibility of completion of the upward wave. Thus, I recommend waiting for clarification of the situation because there could be a reaction to yesterday's vote in parliament in today's European session. Therefore, strong movements are possible.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
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