The section of the trend, which originates on September 23, took a five-wave fully equipped form. However, the internal wave structure of the proposed wave 5-5 still does not look entirely convincing and may require additions and adjustments. Nevertheless, the upward trend has been nearing its end for a long time. The demand for the British dollar, however, remains quite high, and this factor can lead to a further complication of the upward trend.
On the lower chart, the wave marking looks quite complicated. This is because in recent weeks the instrument has been trading in a very narrow range, without canceling the construction of an upward trend section. At the moment, it is quite possible to continue increasing the quotes of the instrument within the wave 3-5-5, although this wave takes a very long form. The internal wave layout of the wave 5-5 does not look quite convincing. In recent weeks, the instrument has been trading mainly around the 127.2% Fibonacci level without major jumps.
The British pound continues to be in demand in the foreign exchange market. Although, it is better to say that the demand for it is not decreasing. It is the absence of a decline in demand that allows the British to stay in their current positions. The tool cannot even build a correction wave 4, the construction of which is implied by the current wave markup. There's not much going on in the UK right now. Since the EU and Britain completed Brexit and agreed on the terms of a trade deal, the news background for the pound/dollar instrument has become much more sparse. Yesterday, the index of business activity in the UK manufacturing sector rose to 54.1. However, the markets did not pay attention to it. They do not pay attention to the third "lockdown", which continues in the country. They do not pay attention to the possible decline in the economy in the last two quarters, which is quite logical, given the two "lockdowns" this winter.
At the same time, the Director-General of the World Health Organization, Tedros Ghebreyesus, said that the pandemic can be controlled even with all the new strains. The number of new cases worldwide has declined for the third week in a row, which gives hope for an early victory over COVID-2019. "We can prevent the spread of infection and save lives if we continue to comply with the already proven health measures," said the head of the WHO. However, Tedros Ghebreyesus also warns that the number of cases could start to rise again if countries relax quarantine requirements too sharply. The world has seen a decline in infections before, however, people and states have lost their vigilance too quickly and the infection has started to spread again at a high rate. And the director of the WHO health emergencies program, Michael Ryan, said that it is unlikely to completely defeat the coronavirus, however, countries have the opportunity to return to normal life thanks to universal vaccination.
General conclusions and recommendations:
The pound/dollar instrument continues to build an upward trend section. Thus, at present, I recommend buying the pound/dollar instrument in the event of a successful attempt to break through the mark of 1.3750 with targets located near the 40th figure, within the assumed wave 3-5-5 of the upward trend. So far, there are no clear signals about the end of the upward trend.