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Simplified wave analysis and forecast for GBP/USD, USD/JPY, USD/CHF on December 18

GBP/USD

Analysis:

Quotes of the British pound continue to move to the north of the price chart. The price is approaching the lower limit of the preliminary target zone. The last section in the direction of the trend counts down from December 7. In the structure of this wave, an intermediate correction is nearing completion.

Forecast:

Today, the current decline is expected to end, the formation of a reversal and the beginning of a price rise. The change of course may coincide with the release of important news blocks. A breakout of the upper limit of the nearest resistance may occur today.

Potential reversal zones

Resistance:

- 1.3670/1.3700

- 1.3590/1.3620

Support:

- 1.3500/1.3470

Recommendations:

There are no conditions for selling the pound on the market today. It is recommended to track signals for buying the instrument in the area of settlement support.

analytics5fdc50daa4f9a.jpg

USD/JPY

Analysis:

For most of this year, the Japanese yen has been strengthening against the US dollar. The last section in the direction of the trend counts down from November 9. The wave structure looks complete. The price is approaching the upper limit of a strong potential reversal zone.

Forecast:

At the next trading session, there is a high probability of a price rise, no further than the calculated resistance zone. Then it is expected to form a reversal and move the price down, up to the levels of settlement support.

Potential reversal zones

Resistance:

- 103.50/103.80

Support:

- 102.80/102.50

Recommendations:

Buying the yen today can be unprofitable. It is recommended to pay all attention to the search for signals of selling the pair.

analytics5fdc50ee795f0.jpg

USD/CHF

Analysis:

The trend of the Swiss franc major is directed to the south of the chart. The unfinished section started on November 11. It recently completed a hidden correction. Since last week, a reversal pattern has been developing on the chart to continue the main trend.

Forecast:

In the first half of the current day, there is a high probability of a flat movement mood, with an upward vector. In the area of the resistance zone, a change in the rate is expected, followed by a decline. At the end of the day, you can expect an increase in the volatility of the pair.

Potential reversal zones

Resistance:

- 0.8860/0.8890

Support:

- 0.8790/0.8760

Recommendations:

Franc purchases are unpromising today. After the appearance of reversal signals in the area of the resistance zone, it is recommended to take short positions.

analytics5fdc510071492.jpg

Explanation: In the simplified wave analysis (UVA), waves consist of 3 parts (A-B-C). The last incomplete wave is analyzed. The solid background of the arrows shows the formed structure, and the dotted one shows the expected movements.

Attention: The wave algorithm does not take into account the duration of the instrument's movements in time!

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