Overview of GBP / USD for the week of May 31 on simplified wave analysis

Wave picture of the chart D1:

The vector of the main direction of the trend since October 2016 forms a bullish wave. The wave level of the price rise is very high, which makes it possible to classify it as a long-term trend. Since January 25, a downward corrective zigzag is forming.

The wave pattern of the graph H1:

The bearish wave, dominant since April 17, takes the place of the final part (C) in a larger scale construction. The wave has reached the minimum possible level of elongation. But the reversal signals on the chart have not yet been formed.

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The wave pattern of the M15 chart:

The last unfinished wave section from May 10 is included in the descending figure of a larger scale. In the coming days, one can expect a short-term rollback upward.

Recommended trading strategy:

The reduction potential is limited. For inter-day trading, the short-term sales are possible. For other styles, it is better to abstain until clearer market signals appear.

Resistance zones:

- 1.3460 / 1.3510

Support zones:

- 1.3230 / 1.3180

Explanations to the figures: Simplified wave analysis uses a simple waveform, in the form of a 3-part zigzag (ABC). At each TF the last incomplete wave is analyzed. Zones show the calculated areas with the greatest probability of a turn.

Arrows indicate the wave counting according to the technique used by the author. The solid background shows the generated structure, dotted - 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 confirmation signals from your trading systems!

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