Large TF:
As part of the downward trend wave dominating since April last year, the price rise of the last 3 months constitutes a correction.
Small TF:
As a result of the appreciation, the price of a pound reached a large reversal zone. The wave structure looks complete. The downward zigzag, which began on February 27, has a reversal potential and can become a starting point for a new section of the main trend.
Forecast and recommendations:
In the coming days, it is likely that the price of the pound will move in the range between the nearest oncoming zones. After the reversal model is fully completed, a price break will follow, with a breakthrough in the nearest support. Traders should look at the signals of the sale of a major.
Resistance zones:
- 1.3180 / 1.3230
Support areas:
- 1.2930 / 1.2880
- 1.2700 / 1.2650
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!
The material has been provided by InstaForex Company - www.instaforex.com