FX.co ★ Analysis of GBP/USD on May 10, 2021. Scotland to sue London and Boris Johnson

For the Pound/Dollar instrument, such movements continue, which are very difficult to attribute to any particular wave structure. Starting from April 20, the movement is such that it is generally difficult to guess what kind of wave it is (downward). Markets reacted quite violently to the Bank of England meeting last week, no less violently to the disappointing statistics in the United States, and today they are completely euphoric, as it became known over the weekend that the Scottish parties, which are in favor of an independence referendum, have increased their factions in Parliament. However, London has already managed to declare on Sunday that it will not provide official permission. Therefore, at this time, it is not clear what the British buyers are happy about. Weak non-farms in the USA? Election victory in Scotland for secessionists? Or Boris Johnson's refusal to grant the right to a second referendum? One way or another, but the demand for the pound sterling grew very strong on Friday and Monday, and so far the current wave counting looks like a-b-c-d-e. If this is true, then wave e is currently being built, which may end shortly. If not, then changes will have to be made to the current wave counting.

The news background for the Pound/Dollar instrument on Friday was the same as for the Euro/Dollar instrument. Because it was expressed only by reports from the United States, which failed. However, after the weekend, there were some more extremely important news. First, in Scotland, the parties that are campaigning for secession from Great Britain and for a return to the European Union have won. Secondly, Edinburgh is ready to go into a conflict on this issue with London, which does not have the legal right to hold a referendum. Thirdly, Boris Johnson once again confirmed that Scotland had already held a referendum in 2014 and then there was an agreement that this issue would be closed for at least one generation. That referendum ended in victory for the supporters of the alliance with Britain. However, the current leader of Scotland, Nicola Sturgeon, believes that those agreements have sunk into oblivion along with Brexit, as in the 2016 referendum, the majority of Scots voted to stay in the European Union. It turns out that now London is hindering the democratic choice of the Scottish people. By the way, it is still completely unclear what the results of the new independence referendum will be, if it will take place at all. Most opinion polls show that the distribution of supporters and opponents of independence is approximately the same as in the 2016 referendum. Thus, the outcome of a possible referendum is not at all obvious.

At this time, the wave pattern continues to be very confusing, so I recommend waiting for its clarification. There are at least several variants of wave counting, each of which can be implemented in the coming weeks. The movement of recent days looks tempting, but the entire wave counting continues to look ambiguous.

The downward trend section, 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.