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Simplified Wave Analysis. Review of the currency pair EUR / GBP for October 23

Wave pattern graphics H4:

The perspective trend direction on the cross chart can be traced from April 17th. The wave is rising, a correction has been forming in it in recent months.

Wave pattern graphics H1:

The bearish wave of August 28 reached a zone of potential reversal. The wave structure looks complete.

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Wave pattern graphics M15:

Since October 10, the bull wave develops. Its wave level is still insufficient to change the trend of a wave of a larger scale, but the potential is not fully utilized. In the coming days, it is likely to roll back down.

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Recommended trading strategy:

The conditions for conducting trade deals on large TF pairs have not been formed. In day trading, short-term cross-country purchases are possible.

Resistance zones:

- 0.8920 / 0.8970

Support areas:

- 0.8800 / 0.8750

Explanations to the figures: The simplified wave analysis uses waves consisting of 3 parts (A – B – C). For the analysis, 3 main TFs are used, on each 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!

The material has been provided by InstaForex Company - www.instaforex.com