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Simplified Wave Analysis. Review of EUR/GBP pair for the week of October 20

Wave pattern on the H4 chart:

The dominant direction of the cross trend in the short-term is given by the rising wave of April 17.

Wave pattern on the H1 chart:

The last actual wave of this scale began the formation from the end of August and was already completed. In the wave of the higher timeframe, the plot became a bearish correction (B).

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Wave pattern on the M15 chart:

The high potential of the rise that began on November 13 makes it possible to expect its continuation. Over time, the entire movement will move to a larger scale. In the coming days, a short-term flat is not excluded.

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Recommended trading strategy:

Conditions for long-term investment in the tool has not yet been created. It is necessary to wait out the period of high volatility. In the scale of the international trade style, purchases are preferable.

Resistance zones:

- 0.9030 / 0.9080

Support areas:

- 0.8850 / 0.8800

Explanations of the figures:

The simplified wave analysis uses 3 parts (A – B – C). For the analysis, three main TFs are used. On every last part, the incomplete wave is analyzed. Zones show calculated areas with the highest probability of reversal.

The arrows indicate the number of wave markings used by the author. While the dotted shows the formed movement.

Note: The wave algorithm doesn't take into account the duration of tool movements over time. To trade a trade transaction, you need to confirm your trading systems!

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