The last short-term wave of the pound starts on March 13th. During this time, the structure formed the first 2 parts (A + B). The decline that began on May 3 gave rise to the final part (C). In the reversal model, rollback up is not enough.
Forecast:
The general flat mood is expected at the next trading sessions. Before the beginning of an active decline, there is a high probability of a short-term price rise, not higher than the calculated resistance zone. By the end of the day, the volatility of the instrument may increase sharply.
Recommendations:
Buying the pound today is possible, but we must take into account the correctional nature of the upcoming rise. It is more reasonable to refrain from trading until the appearance of sell signals in the area of the upper settlement zone.
Resistance zones:
- 1.3070 / 1.3100
Support zones:
- 1.2970 / 1.2940
Explanations to the figures: Waves in the simplified wave analysis consist of 3 parts (A – B – C). The last unfinished wave is analyzed. Zones show areas with the highest probability of reversal. The arrows indicate the wave marking according to the method used by the author, the solid background is the formed structure, the dotted ones are the expected movements.
Note: The wave algorithm does not take into account the duration of tool movements over time.
The material has been provided by InstaForex Company - www.instaforex.com