Simplified wave analysis and forecast of GBP/USD and AUD/USD for August 18

GBP/USD

Analysis:

A bullish trend has been developing on the chart of the British pound since March. Quotes are located in the area of the strong resistance zone of the senior TF. Since the end of July, the price has formed a flat correction along its lower border. Its structure is still incomplete.

Forecast:

In the next trading sessions, it is possible to wait for the completion of the price rise. In the second half of the day, a reversal is expected in the area of the calculated resistance and the beginning of the price move down. If the nearest support breaks through, the decline will continue to the borders of the next zone.

Potential reversal zones

Resistance:

- 1.3180/1.3210

Support:

- 1.3100/1.3070

- 1.3010/1.2980

Recommendations:

Today, buying the pound is risky because of the small potential for expected growth. It is recommended to refrain from trading during the upcoming decline. Intraday supporters will have an opportunity to sell the pair after the reversal signals appear.

AUD/USD

Analysis:

On the chart of the Australian dollar, within the framework of the dominant bullish trend in the last month, the price forms a correction. In the form of extremes, this wave has the form of a shifting plane. The price has been moving towards the upper limit of the price channel in recent days.

Forecast:

Today, the general upward vector of the pair's movement is expected, with the flat nature of price fluctuations. In the next session, a short-term decline is not excluded, no further than the support borders. In the area of the resistance zone, there is a high probability of a return to the downward course.

Potential reversal zones

Resistance:

- 0.7260/0.7290

Support:

- 0.7190/0.7160

Recommendations:

Today, trading on the pair's market is only possible within the intraday framework. Before the appearance of reversal signals, purchase of the instrument is in the priority.

Explanation: In the simplified wave analysis (UVA), waves consist of 3 parts (A-B-C). The last incomplete wave is analyzed. The solid background of arrows shows the formed structure, and the dotted ones show the expected movements.

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

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