GBP / USD pair for the week of May 16 via simplified wave analysis

Wave picture of the D1 chart:

The daily scale of the instrument from October 2016 points to the priority of the bullish course. The potential for increase is very large since in a larger ascending wave structure this section of the graph gives rise to the final part (C).

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The wave pattern of the H1 graph:

The price rate is set by a bearish wave of April 17. It takes the place of the last part (C) in the wave structure of the bearish wave of H4 scale. The target zone has been reached and the proportions of the wave are met. There are no signals of reversal.

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The wave pattern of the M15 chart:

Currently, in recent weeks, the lateral flat quotations is formed at the end of a wave of a larger scale, within the zone of a potential reversal.

Recommended trading strategy:

There are no prospects for sales. For all styles of trading, it is recommended to purchase the instrument.

Resistance zones:

- 1.3700 / 1.3750

Support zones:

- 1.3490 / 1.3440

Explanations to the figures:

A simplified wave analysis uses a simple waveform, in the form of a 3-part zigzag (ABC). The last incomplete wave for every time frame is analyzed. Zones show the calculated areas with the greatest probability of a turn.

Arrows indicate the counting of wave according to the technique used by the author. The solid background shows the generated structure and the dotted exhibits the expected wave motion.

Attention: The wave algorithm does not take into account the duration of the tool movements in time. To conduct a trade transaction, you need to confirm the signals used by your trading systems.

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