On the daily time frame of the major pound sterling chart since October 2016, there is a steady upward trend. The beginning price rise has a high wave potential. It is already obvious that this plot has launched a new global trend of the pound.
At the end of the wave, the counter correction construction began its formation in the last six months. It has the wrong kind of structure. Since the end of January this year on the chart, you can track the forming zigzag of the final part (C).
In the next week period, it is probably the end of a bearish retracement. The most likely site of the turn may be the support zone. Further, a change of direction is expected, with a new section of the course rising.
The boundaries of resistance zones:
- 1.4190 / 1.4240
The boundaries of support zones:
- 1.3920 / 1.3870
Explanations to the figures: For simplified wave analysis, the simplest type of wave is used in the form of a zigzag, combining 3 parts (A; B; C). Of these waves, all kinds of correction are composed and most of the impulses. At each time frame, the last, incomplete wave is analyzed.
The areas marked on the graphs are indicated by the calculation areas, where the probability of a change in the direction of motion is significantly increased. Arrows indicate the wave counting according to the technique used by the author. The solid background of the arrows indicates the structure formed, the dotted one indicates the expected wave motion.
Attention: The wave algorithm does not take into account the duration of the tool movements in time. The forecast is not a trading signal! To conduct a trade transaction, you need to confirm the signals of your trading systems.
