The pair seem to start to develop a descending impulse | 06 May 2016

We assumed that the price had alreade developed the rising impulse in the form of the wave [c] of zigzag.

It is also proved by the final diagonal triangle and the subsequent rapid decline as well as reluctance of the British currency to play this movement back. Probably now it is a correction and the price is ready to continue the downward movement.

We can not exclude that it is a downward impulse decline. If this assumption is correct, we can risk on retest of local Low and open a Sell trade, which at the earliest opportunity shall be immediately transferred into the black.

In this case, we may try to take an advantage of the third impulse wave.