07.05.202113:43 Forex Analysis & Reviews: Analysis of GBP/USD on May 7. Pound is confused where it is and what is happening

The current movements of the pound/dollar pair continue, which are very difficult to attribute to any particular wave pattern. Since April 20, the movement is such that it is difficult to guess what kind of wave it is. The markets reacted quite sharply to the Bank of England meeting, but there was no clear up or down movement. Thus, the current wave pattern during this week did not become clearer. It may require adjustments and additions at any time. The trend area of the last two weeks does not look like anything at all, so it is not suggested to trade this instrument right now. It is worth noting that the wave pattern should be as clear and simple as possible, so that it can be used to trade the instrument and earn profit on it. This section may take the form of wave d, but it is already noticeable that this supposed wave d is completely different from waves a, b, or C. Thus, the wave pattern is likely to get even more complicated.

In terms of the news background, it was quite unclear yesterday. On the one hand, the Bank of England held its meeting, while on the other, the only decision taken during it is to reduce the volume of weekly purchases of bonds. The British currency moved in different directions and calmed down. Today, the quotes slightly rose, which may end in the next few hours. The instrument continues to be in a very narrow range. Today, the same US reports, which was mentioned in the EUR/USD article, will be important for the pound although there is reason to believe that this data will not be able to clarify the wave pattern. Therefore, I don't expect much from today anyway. It can be recalled that yesterday's parliamentary elections were held in Scotland, which will be very important for the future of the UK and, consequently, for the British pound. However, there are currently no voting results, as they will most likely be known within Monday. Currently, it is not clear where the pound will go after it becomes clear how many seats in Parliament will be occupied by deputies of parties that actively promote the idea of separation from England.

At this time, the wave pattern continues to be very confusing, so it is suggested to wait for it to clear up. There are at least several options for wave pattern, each of which can be implemented in the coming weeks.

The downward trend section, which started to form a few months ago, is taking on a quite unclear form. Based on the above-mentioned, several wave pattern options are possible at once. Unfortunately, different options offer different further developments. Therefore, it may be necessary to wait for some time for the current wave markup to slightly clear up.