Since June 2001, Sterling versus the dollar entered a new pattern which formed a Flat wave, where waves A and B were completed of this pattern; conflicting ideas are seen in the pair’s studies especially over wave B as it was very steep and that pressured some analysts to think it was an IM wave, yet actually it was closer to being a steep Zigzag wave. The ZZ wave is characterized by the steep direction which it might take in some time and that is what the pair indeed witnessed during wave B from this pattern in the period from November 2007 till January 2009.
The flat wave is structured from three internal wave with a 3-3-5 count, meaning that wave A and wave B are likely to take a number of forms like a Zigzag ZZ or a Double Zigzag DZ or even a Triple Zigzag TZ; while wave B had more possibilities, yet as we assess the pair we can clearly see that it was a ZZ wave and the DZ scenario is also acceptable as all does not contradict with what we are going to go be discussing after.
Before discussing the details for the pair to be trading within a Flat Wave, we should note that there is a possibility for the pair to be trading within a D3 Wave, yet the indications on the chart support the likelihood for the Flat Wave; that is what we are going to depend on and thereby we are now in the last wave that forms the C of the proposed scenario.
