Simplified wave analysis and forecast of EUR/USD and GBP/USD for May 1

EUR/USD

Over the past six months, a complex upward corrective pattern has been developing on the European currency chart. The unfinished wave of short-term scale is bearish, starting from March 20. By the current day, it forms the final part (C), within which, in turn, an upward corrective pullback is completed. The price of the pair pushed the minimum level of elongation, coming close to the lower border of the strong resistance zone.

Forecast:

At the next sessions, the price rise, which has taken place in the last days, is expected to complete, with the overall flat nature of the fluctuations. A short-term puncture of the upper border of the reversal zone is not excluded. The change of course of the pair can last all day.

Recommendations:

Before the appearance of reversal signals, euro pair purchases make sense in the form of short-term transactions "scalping". For longer trading, it is recommended to refrain from trading until a clear signal appears that the euro will change.

Resistance zones:

- 1.1230 / 1.1260

Support zones:

- 1.1090 / 1.1060

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GBP/USD

On the British pound chart, a bearish wave is formed from mid-March, in which the first 2 parts (A + B) are fully completed. As part of the weaving finishing area, a counter-lift has developed since the end of last week. The level of minimum lengthening of the correction was broken yesterday, the price reached the lower boundary of the strong zone of potential reversal. Signals of an emergency change of course is not observed on the chart.

Forecast:

The reversal zone is strengthened by the resistance level of the highest TF, so the probability of completion of the entire rise in this zone is very high. In the upcoming sessions, the end of the upward section of the movement, the formation of a reversal and the beginning of the price move down are expected.

Recommendations:

Buying the pound today is hopeless. In the settlement zone, it is recommended to track reversal signals on your trading systems to find the entry point to short positions.

Resistance zones:

- 1.3050 / 1.3080

Support zones:

- 1.2950 / 1.2920

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Explanations for the figures: Waves in the simplified wave analysis consist of 3 parts (A – B – C). The last unfinished wave is analyzed. Zones show areas with the highest probability of reversal. The arrows indicate the wave marking according to the method used by the author, the solid background is the formed structure, the dotted ones are the expected movements.

Note: The wave algorithm does not take into account the duration of tool movements over time.

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