GBP/USD
Analysis:
The pound sterling has been moving in an uptrend since March last year. According to the short-term time frame, the last unfinished section of the trend started from December 21. Based on the long-term time frame, the price approached the lower border of the strong resistance zone. The price has been retracing since yesterday.
Outlook:
Most likely, the price will move sideways between the nearest resistance and support zones. Today, during the course of the European session, there can be a second attempt to put the support zone under pressure. The upward direction will be possible by the end of the day or tomorrow.
Potential reversal areas
Resistance:
- 1.3670/1.3700
Support:
- 1.3550/1.3520
Recommendations:
It will be risky to trade the pound against the trend direction. The best thing to do is to reduce the lot size as much as possible while selling the pound. Long positions are preferable from the support zone.
USD/JPY
Analysis:
The Japanese yen is trading in the bearish trend. The section of the trend from November 9 has reached the upper border of a strong reversal zone on the long-term time frame. The structure of the wave indicates the need for correction
Outlook:
During the upcoming trading sessions, there may be another attempt to put the support zone under pressure. The pressure may last until the current decline is over. Next, one should wait for a reversal and the beginning of price growth.
Potential reversal areas
Resistance:
- 103.30/103.70
Support:
- 102.70/102.40
Recommendations:
Today, one should refrain from trading the Japanese yen. The potential to sell the yen has reached its limit. The condition for buy deals has not yet been created.
USD/CHF
Analysis:
The downtrend, which started in March last year, has reached the upper border of a potential target zone. There are several strong support levels on the long-term time frames. Therefore, a correction is likely to start at these levels.
Outlook:
Over the course of the next day, there may be repeated attempts to put pressure on the support zone. By the end of the day or tomorrow, one can expect a reversal and the beginning of price growth. In case the trend changes, a short-term breakout at the lower border of the support zone may take place.
Potential reversal areas
Resistance:
- 0.8850/0.8880
Support:
- 0.8790/0.8760
Recommendations:
Today, there are no prospects for trading the currency pair in the market. It will be risky to open short positions due to a limited bearish potential. Long positions will become relevant after a clear reversal signal has appeared.
Comments: In a simple wave analysis, waves are composed of 3 sections (A-B-C). The last unfinished wave is analyzed. A solid line indicates a formed structure. A dashed line shows the expected movements.
Note: The wave algorithm does not take into account the duration of the instrument's movements in time!
