Large TF:
The general direction of the price movement of the pair from the spring of the past is set by a bearish wave. In its framework, in recent months, a correctional wave has been formed, which indicates a general incompleteness of the structure.
Small TF:
Since December 12, the wave model has been developing towards the main trend. In its structure, a clear zigzag can be traced. From the oncoming zone of resistance, a bearish wave of small scale began to develop in the last week, which could potentially become a reversal structure.
Forecast and recommendations:
In the near weekly period, the price of the pound will move in a narrow flat corridor. There is a high probability that the current wave will be completed soon and the short-term trend will turn. Prior to the emergence of clear signals on the chart, trading in the pair market is not recommended.
Resistance zones:
- 1.3320 / 1.3370
Support areas:
- 1.3120 / 1.3070
Explanations for the figures: The simplified wave analysis uses waves consisting of 3 parts (A – B – C). On each of the considered scales of the graph, the last, incomplete wave is analyzed. Zones show calculated areas with the highest probability of reversal. The arrows indicate the wave marking by the method used by the author. The solid background shows the formed structure, the dotted - the expected movement.
Note: The wave algorithm does not take into account the duration of tool movements over time. To conduct a trade transaction, you need confirmation signals from the trading systems you use!
