Simplified wave analysis of GBP / USD for the week of December 5

Large-scale graphics:

The long-term vector of the pound since April is directed downwards. From the middle of August, the H4 wave formed towards the trend, which took the place of correction in the older model.

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Medium scale graphics:

The high wave level of the decline that started on November 7 indicates a high probability of the completion of the bullish wave TF H4. The first part (A) is formed in the movement structure. The last 3 weeks in the flat formed the middle part (B).

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Small scale graphics:

Since November 15, the "side-track" with a downward vector is tracked on the chart. This wave of bullish correction of the wrong kind, which lacks the final part (C).

Forecast and recommendations:

The main trend vector pound indicates the prospects of sales in the coming month. Purchases are risky, possible only with intraday trading. It's wise to wait for the current correction to complete and look for signals for short trades.

Resistance zones:

- 1.2910 / 1.2960

Support areas:

- 1.2680 / 1.2630

Explanations for the figures: The simplified wave analysis uses waves consisting of 3 parts (A – B – C). For analysis, 3 consecutive graphs are used. Each of them analyzes the last, incomplete wave. 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, the dotted - the expected movement.

Attention: The wave algorithm does not take into account the duration of tool movements over time. To conduct a trade transaction requires confirming signals of the trading systems you use!

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