Simplified wave analysis of GBP / USD for February 6

Large-scale graphics:

Analyzing the large scale of the pound chart, we can note the downward wave that dominates since April last year. The price has reached a strong support, but the incomplete structure of the wave indicates the probability of formation of no more than a correction.

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Medium scale graphics:

The ascending portion of December 12th completes a complex wave correction in a larger model. The figure on the graph is more like a moving plane.

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Small-scale graphics:

From strong resistance on January 28, the price forms a bearish wave. So far, it does not have enough wave level to change course. In the coming days, it is worth waiting for the re-rise of the course.

Forecast and recommendations:

The rising wave is nearing completion, but no reversal signals have been observed so far. It is recommended to complete the previously opened instrument purchases and start tracking reversal signals in order to find the entrance to the "short" deals.

Resistance zones:

- 1.3140 / 1.3190

Support areas:

- 1.2770 / 1.2720

Explanations for the figures: The simplified wave analysis uses waves consisting of 3 parts (A – B – C). The analysis uses 3 consecutive scale graph. 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.

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