Long impulse decline in the Pound/Dollar pair

18.01.2021

The buyers were not allowed to make the final push to the upper generatrix of the supposed diagonal. Instead, a reversal occurred and the price went down. Probably, wave [v] of v turned out to be truncated. This, together with the final diagonal, is a rather strong signal for a decline.

Thus, we are expecting a continuation of the impulse decline in the pair in the near future. At the same time, the potential for movement remains very interesting for making long-term sell deals.

Consequently, a trading recommendation may look as follows: sell 1.3560, stop loss 1.3590, take profit 1.3400.