GBP/USD
The direction of the price movement of the pound from May 3 is set by a bearish wave. The site completes the larger downward wave model from March 13. The price came close to the upper boundary of the wide zone of the potential reversal of the older TF.
Forecast:
The overall flat mood of the pair price fluctuations is expected today. In the morning, the most likely decline. By the end of the day, the chance of a reversal and the beginning of a counter price rise increases.
Recommendations:
Trading the British currency today is recommended only within the framework of intraday. It is proposed to link the direction of trade transactions with the described sequence. At the same time, it is wiser to reduce the trading lot.
Resistance zones:
- 1.2770 / 1.2800
Support zones:
- 1.2690 / 1.2660
USD/JPY
On the weekly scale of the Japanese yen chart, an upward zigzag wave is formed. The last section was bearish, completing the correctional phase of the wave. The price rise from May 13 has a reversal potential. The structure of the bull wave looks complete. The price reached the resistance zone of the older TF.
Forecast:
To form a full-fledged reversal structure, a downward correction is needed. Today, the upward trend is expected to continue until its full completion in the calculated resistance zone. Change of course should wait at the end of the day or tomorrow.
Recommendations:
Purchases of the pair have limited potential and only possible in the form of short-term "pipsing". By the end of the day, there will be an opportunity to earn on short trades. Supporters of multi-day trading are advised to wait for the lean formation of a downward pullback and to look for entry signals in long positions at its end.
Resistance zones:
- 110.30 / 110.60
Support zones:
- 109.70 / 109.40
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