FX.co ★ Analysis of GBP/USD on May 3, 2021. Sterling's news background remains unfavorable but does not affect the wave counting in any way

For the Pound/Dollar instrument, such movements continue, which are very difficult to attribute to any particular wave structure. During the last trading day, the demand for the American currency rose sharply, which allowed the instrument to decrease slightly, but this decline still does not fit into the current wave counting, although it does not violate or cancel it. I still expect the formation of a new three downward waves, but at the same time, I admit that the wave counting will require adjustments and additions. The entire movement after April 20 does not look like a new three downward or even the first wave of this structure. Thus, this section can take the form of wave d, and the construction of the upward trend will continue and take the form a-b-c-d-e. In general, there are really plenty of wave counting options now. I remind readers that the wave counting should be as unambiguous as possible in order to make money on it, which is clearly impossible to say about the Pound/Dollar instrument.

The news background in recent weeks has become even more confusing than the wave counting. There is a lot of news and it seems that the markets themselves do not know what to do with the instrument. In the UK, parliamentary elections will be held in Scotland this Thursday, which may become the starting point for a future referendum on independence. It is unclear how the turmoil will end in Ireland and Northern Ireland, where people are opposed to Brexit and its current conditions. Economic reports from Britain also leave much to be desired. On the other hand, America is currently discussing two new economic aid packages that could be adopted by the summer, as well as raising taxes for the rich and corporations. All these events may or may not affect the markets and their preferences. There is no clear answer to this question. Therefore, the entire movement, starting from approximately February 26, passes between the 37th and 40th figures. In the current situation, wave counting could help, but it only makes things more confusing, not clearer.

At this time, the wave pattern is again confusing, so I recommend waiting for the wave situation to clear up. There are at least several variants of wave counting, each of which can be implemented in the coming weeks.

The downward trend, which began its construction a couple of months ago, is taking on a rather ambiguous form. As I said above, several wave counting 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 counting to clear up a little.