The wave marking for the pound/dollar instrument currently appears quite confusing, but it still does not call for any clarifications. We have a five-wave upward trend section, which has taken the form a-b-c-d-e and may already be complete. Because the quotes' departure from the reached highs is still very weak, I believe that both instruments are still developing an upward trend segment. This section should be finished off with a mutual lowering. It is challenging to sum up the recent weeks' strong and diverse news environment for the British pound in a single word. The pound had sufficient justification at this point to rise and fall. As you can see, it primarily chose the first option and still does so today. The proposed wave e has become more complicated as a result of the recent rise in quotes. It has already evolved into a sufficiently developed form at this point to be finished. For the time being, I am still anticipating the decline of both instruments, but changes may be made due to the impending holidays, when market activity will undoubtedly decline. For both instruments, the wave marking permits the completion of the construction of the ascending section at any time.
No news is available, and the market is idle.
The pound/dollar exchange rate on Tuesday has already displayed an amplitude of 70 basis points, which is quite a bit. As a result, the market is not yet at the time of the New Year's or Christmas celebrations in the traditional sense. Although quite active, the movement is primarily horizontal. Additionally, because the movement is horizontal, no modifications or additions can be made to the current wave marking. Currently, it's unclear whether the upward portion of the trend has ended or if the market will keep driving up demand for the pound. Furthermore, it is impossible to respond to this query because the current demand for the dollar or the pound is not increasing.
The situation could stay this way for the next two weeks. Sharp spikes in activity in the market can be a rare occurrence that is quickly followed by lulls and sideways movement. The background news was missing yesterday, today, and tomorrow as well. Based on the foregoing, I conclude that the horizontal trend might last until the following week when at least a few calendar entries for reports and events will be more or less interesting. But they won't be in great numbers.
The construction of a new downward trend segment is predicated on the wave pattern of the pound/dollar instrument. Since the wave marking now makes it possible to immediately start building a downward trend section, I am no longer able to recommend purchasing the instrument. With targets around the 1.1707 mark, or 161.8% Fibonacci, sales are now more accurate. Wave e is likely finished, though it could take on an even longer form.
The euro/dollar instrument and the picture look very similar at the larger wave scale, which is good because both instruments should move similarly. The upward correction portion of the trend is currently almost finished. If this is the case, a new downward trend will soon be developing.