Large-scale graphics:
The dominant trend direction of the pound since April, sets the downward wave. From the potential reversal, zone formed a wave of counter correction. In recent months, the trend has continued.
Medium scale graphics:
The bearish wave of November 7 gave rise to the final section (C) of the main model. In recent weeks, the price is adjusted.
Small-scale graphics:
The preliminary potential of the ascending phase of December 12 is close to exhaustion. Reached preliminary target area. Signal reversal on the chart is not observed.
Forecast and recommendations:
The current price increase is directed against the main trend, so purchases are extremely risky. It is necessary to wait for signals of completion of the entire bull wave, after which it is recommended to track the signals of the sale of the instrument.
Resistance zones:
- 1.2710 / 1.2760
Support areas:
- 1.2500 / 1.2450
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, you need confirmation signals from the trading systems you use!
The material has been provided by InstaForex Company - www.instaforex.com