Forecast for GBP / USD pair on March 12, 2019

Wave counting analysis:

On Monday, March 11, trading of the EUR/USD pair ended and increased by 15 bp increase. Thus, there are more and more reasons for assuming the completion of the descending trend section. The unsuccessful attempt to break through the level of 127.2% according to Fibonacci also indirectly indicates the end of the downward wave. The pair may continue to raise the quotes as part of building a new upward wave and possibly a new uptrend trend. Thus, I now expect an increase in the area of 1.1330. Today, I recommend paying attention to inflation in America, which is an important indicator and may have an impact on trading in the analyzed instrument.

Sales targets:

1.1184 - 127.2% Fibonacci

1.1119 - 161.8% Fibonacci

Purchase targets:

1.1419 - 0.0% Fibonacci

General conclusions and trading recommendations:

The pair is presumed to have completed the construction of the 5th wave. Thus, only a breakthrough of the level of 127.2% Fibonacci will return us to sales. Now, I recommend buying a pair of small volumes with targets located around 13 and 14 figures, based on the construction of the ascending 1st wave or a.

The material has been provided by InstaForex Company - www.instaforex.com

Forecast for GBP / USD pair on March 12, 2019

The British pound rose by 175 points yesterday with little or no reason, just in anticipation of today's Brexit vote in parliament. Moreover, the expectations of its outcome cannot be called optimistic, on the contrary, the majority of political scientists suggest a negative decision on the current issue of the Irish border. Actually, the meaning of the series of voting can be reduced to the fact that the date of the country's withdrawal from the EU is postponed to a later date. As far as it may be optimistic about the impact on the pound, it is doubtful since at the moment the British currency does not look oversold. Technical equilibrium of EUR/GBP pair can be determined approximately at a price of 0.8300, which is 2.6% lower than the current value but this deviation is quite moderate, even in small fluctuations. In other words, growth of the GBP/USD pair is possible to the MACD line of 1.3400 on the weekly chart. But in this case, a double price divergence with the Marlin oscillator on a daily basis will be formed, which warns of the short-term growth that is taking place.

If today's vote on the "improved" deal fails, then tomorrow the parliamentarians will vote on the question to "Leave the UK out of the EU without a deal." On Thursday, the question is "to postpone or not the Brexit date" and it seems that delaying the date X now will satisfy everyone, which is evident even in the wording of the questions.

Hence, in the main scenario, we are waiting for the failure of today's vote, turning the pound off the MACD line with a target of 1.2930 on the four-hour chart. A positive voting outcome will send the price to 1.3400 from where we look to the reversal signals of the indicators. Voting will be in the evening.

The material has been provided by InstaForex Company - www.instaforex.com