FX.co ★ Analysis for GBP/USD on June 1

For the pound/dollar pair, the wave marking has not changed in recent weeks. The Briton has been in a side corridor of 120 basis points for more than two weeks. Thus, after the assumed wave e completed its construction, the correction wave structures began, which are very difficult to describe and define for any structure of the higher scale. And today's increase in the quotes of the instrument led to the fact that the 0.0% Fibonacci level was worked out for the first time since February 24. Thus, the supposed wave e has continued its construction all this time, and those incomprehensible correction structures that we have observed in recent weeks are parts of it. In general, the wave marking has not become clearer either today or in the last two weeks. Since the attempt to break through the level of 1.4240 was unsuccessful, there were reasons to assume the construction of the upward trend section, which originates on March 25 or April 9. Nevertheless, the markets may make several more attempts to break this mark.

The pound/dollar pair moved directly opposite to the euro/dollar pair during the current day. The decline in quotes began in the morning after an unsuccessful attempt to break through the 1.4240 mark. From my perspective, it was the unsuccessful attempt to break through this mark that caused the further decline in the British dollar's quotes. In the UK, the news background was relatively weak today. At the current moment, only the index of business activity in the manufacturing sector for May was released, which only slightly decreased from 66.1 points to 65.5 points. At the same time, the index value remained well above the level of 50.0, below which it is considered that the trend has become negative. Thus, the reduction in business activity by 0.6 points clearly could not cause a decline in quotes by 90 basis points. And in the second half of the day, the increase in the quotes of the instrument began, although quite weak at the moment, only a couple of dozen points. But it began when reports on business activity in the manufacturing sector were released in the United States, both showing an improvement compared to the previous month. Thus, in the second half of the day, it would be more logical to see a decline in the quotes of the instrument, that is, the growth of the dollar. Bank of England Governor Andrew Bailey's speech, which may shake up the markets once again on Tuesday, will begin soon. However, everything will depend on whether Mr. Bailey reports anything essential or not.

At this time, the wave pattern continues to be twofold. The pound moves almost horizontally, which makes it challenging to work with it. At this time, it is still unclear whether the proposed wave e has completed its construction. Its internal wave structure looks ambiguous. You can try to sell the instrument with a protective order above the level of 1.4240, which corresponds to 0.0% of the Fibonacci. And if the level of 1.4240 breaks, buy it.

The upward section of the trend, which began its construction a couple of months ago, takes a rather ambiguous form. As I said above, several variants of wave marking are possible at once. Unfortunately, different options offer different further developments. Therefore, it may be necessary to wait for the current wave markup to clear up a little.