Simplified wave analysis. Overview of GBP / USD for February 19

Large TF:

The wave of the main trend of the pound major since April is moving to the "south" of the chart. The trend structure does not look complete, therefore counter price movements are nothing more than a correction.

Small TF:

In the ascending wave model of December 12, a correction phase develops in recent weeks. In the last days, an intermediate pullback was formed, after which the wave will continue.

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Forecast and recommendations:

The current decline in the pair will continue soon, as supporters of the interday trading style will be able to take advantage of. For longer investments, traders need to wait for the completion of the entire downward wave.

Resistance zones:

- 1.2970 / 1.3020

Support areas:

- 1.2700 / 1.2650

Explanatory notes for the figures: The simplified wave analysis uses waves consisting of 3 parts (A – B – C). On each of the considered scales of the graph, the last, 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, 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