GBP/USD
Analysis:
The British pound is moving in the upward trend which is set by the wave from March 18. A correction has been forming in this wave over the past week. Apart from that, the wave extended down to the next potential reversal area. The price increase of the last two days may indicate the beginning of a reversal pattern.
Forecast:
Today, price movements in the market are expected between the closest oncoming zones. A confirmed reversal by the end of the day is expected to mark the beginning of a price increase. At the same time, a short-term breakthrough of the lower support border is possible.
Potential reversal zones
Resistance:
- 1.2350/1.2380
Support:
- 1.2280/1.2250
Recommendations:
Only the intraday pound trading is possible today. It is preferable to sell the pair until there are reversal signals. When the reversal is confirmed it is better to change the direction of open positions.
USD/JPY
Analysis:
The upward wave from March 9 sets the main price movement for the Japanese yen. A correction has been forming for the past period of the month building a downward triangle on the chart. The wave has entered the final phase.
Forecast:
Today, the pair is likely to move in a narrow lateral corridor between the oncoming zones. At the European session, a downward movement is expected. A reversal is likely to take place by the end of the day. The price is anticipated to rise.
Potential reversal zones
Resistance:
- 107.80/108.10
Support:
- 107.20/106.90
Recommendations:
Today, it is better to trade the pair only in terms of a separate session. Sell deals are preferable until there are reversal signals. Moreover, it is better to lower the trading lot.
Explanations: In the simplified wave analysis, waves consist of 3 parts (A-B-C). The last incomplete wave is analyzed. The solid arrows show the formed pattern, while dotted arrows indicate the expected movements.
Note: The wave algorithm does not take into account the duration of the instrument movements in time.
