The wave marking of the GBP/USD instrument is quite similar to the marking of the EUR/USD. After the rising wave, which did not fit into the previous version of the wave marking, the same five waves were built. The only difference is that the trend area after May 27 is interpreted as a corrective a-b-c-d-e. Since the low of wave e is below the low of wave c, this section of the trend can complete its construction now. Let me remind you that the situation is about the same for the euro currency – the downward trend section can also end even now. But let me remind you that the news background continues to have a very strong influence on the mood of the market. Suppose the market considers it advisable to continue selling the British and Europeans. In that case, the decline in quotes of both instruments will continue, and the trend areas will get a longer look. Thus, I think it's too early to discuss both trends. The news background has not changed so much lately, and the market does not signal that it is no longer ready to reduce demand for the euro and the pound. The Fed will likely raise the interest rate by 0.75% in September for the third time in a row, which may cause new downward momentum. It can get into the composition of the fifth wave for both instruments, or it can result in the complication of the entire wave marking. The market is still much more afraid of a recession in the European Union or the UK than in the US, which has already begun. There are even more concerns about the UK. While in the European Union, inflation is about 9%, in the US, inflation has started to slow down and may fall to 8%, and in the UK, it is projected to grow to 13% or higher.
On the one hand, this means that the Bank of England may raise the rate longer and stronger than the Fed. Still, on the other hand, the British economy is already predicted to have a severe recession. Thus, circumstances may constrain the actions of the British regulator.
General conclusions.
The wave pattern of the pound/dollar instrument suggests a continued decline in demand for the pound. I advise now selling the instrument with targets near the estimated mark of 1.1112, equivalent to 200.0% Fibonacci, for each MACD signal "down," but this mark is quite far away, so the instrument may not reach it. Inside the fifth wave, it is necessary to sell more cautiously since the downward section of the trend can end at any moment.