Simplified wave analysis of EUR / GBP pair for the week of December 18

Large-scale graph:

Price fluctuations of the cross from April are consistent with the algorithm of the last ascending wave. The formed standard plane has entered the final phase.

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Medium-scale graph:

The rising wave of November 13 gave rise to the final part of the model senior timeframe. A large scale resistance zone has been reached and the wave looks complete.

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Small-scale graph:

The decline that began on December 19 gave rise to a correctional section of a larger wave. Signals of the completion of the entire trend wave and the subsequent change of the course on the chart have not yet been observed.

Forecast and recommendations:

The price reduction is expected to occur against the main trend this week. Hence, sales may be risky. It is recommended to refrain from trade deals until the wave pattern is cleared.

Resistance zones:

- 0.9030 / 0.9080

Support areas:

- 0.8870 / 0.8820

Explanations of the figures:

The simplified wave analysis uses waves consisting of 3 parts (A - B - C). For the analysis, three main TFs are used. On every last part, the incomplete wave is analyzed. Zones show calculated areas with the highest probability of reversal. The arrows indicate the wave marking by the method used by the author. The solid background shows the formed structure while the dotted shows the expected movement.

Note: The wave algorithm does not take into account the duration of tool movements over time. To conduct a trade transaction, you need confirmation signals from the trading systems you use!

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