The pound followed the euro’s lead and also attempted an active campaign to recover lost positions. The plan was successful, with the price rising and regaining more than half of the previous decline. However, this activity from buyers is seen as a correction in an emerging downward impulsive movement.

Presumably, a zigzag is forming, with waves [a] and [b] already in place, and work is currently underway on the final wave of this model. This requires the formation of an impulse or a final diagonal triangle.
Therefore, a resumption of downward movement is expected in the near future, leading to the establishment of a new local price low.

Investment idea: sell 1.2940, stop loss 1.2970, take profit 1.2750.

Origin: FreshForex

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