The GBP/USD currency pair attempted to resume its downward movement on Tuesday, but with too much uncertainty. The British pound entered a challenging fundamental situation last week, resulting in a 3-cent decline against the U.S. dollar. However, over the weekend, we indicated that we do not believe in further growth of the American currency, unless the war in the Middle East resumes. Let's recall what led to the British currency's fall last week.

The EUR/USD currency pair resumed its decline on Tuesday, once again driven by geopolitical factors. Recall that on Monday, news leaked that the White House was willing to make some concessions to Iran and even temporarily lift all sanctions regarding Iranian oil.

Analysis: On the short-term chart, a bearish trend has been forming for the British pound major since January of this year. Over the past month, an extended corrective flat (B) has been developing within the wave structure. Quotes have reached the upper boundary of a potential reversal zone on the daily timeframe.

Analysis: Since January of this year, price movement in the main British pound pair has been driven by a downward wave algorithm. After touching the upper boundary of a strong potential reversal zone, quotes entered a drifting phase, forming a full correction.

Analysis: Analysis of the hourly chart of the British pound major pair shows that the downward wave that began on January 27 is not yet complete. The first segment (A) has been completed. Since early March, the middle part of the wave (B) has been forming in a sideways flat. The wave is developing as a shifting flat and remains unfinished. At the time of analysis, prices are moving within a defined price channel.