GBP/USD
Analysis:
In the structure of the dominant upward trend of the British pound, a complex correction wave ended two weeks ago. Since September 10, the ascending structure has been developing. It has a reversal potential. The decline that began in its framework gave the structure an incorrect appearance, with the middle part lengthening below the reference point. The price has reached the upper limit of a powerful zone of potential reversal of a large TF.
Forecast:
Today, the current downward trend is expected to continue. In the first half of the day, a short-term rise in the area of the resistance zone is not excluded. Volatility is likely to increase in the US session.
Potential reversal zones
Resistance:
- 1.2770/1.2800
Support:
- 1.2660/1.2630
Recommendations:
Until clear reversal signals appear on the chart, buying the pound is premature. When trading, the limited expected potential of the current decline should be taken into account.
USD/CHF
Analysis:
A bullish correction has been forming in the Swiss franc market since August 5 as part of the dominant bearish wave. It looks like a stretched plane. The price has reached a large-scale resistance level. The wave looks complete, however, there are no reversal signals.
Forecast:
Pressure on the calculated resistance zone is expected in the next session. The probability of a short-term breakout of its upper limit remains. Then you can wait for the formation of a reversal and the beginning of the price move down.
Potential reversal zones
Resistance:
- 0.9220/0.9250
Support:
- 0.9160/0.9130
Recommendations:
The potential for franc purchases is almost exhausted. Conditions have not yet been created for the sale. It is recommended to refrain from trading until clear reversal signals appear. After that, sales of the instrument will become a 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 the arrows shows the formed structure, and the dotted one shows the expected movements.
Note: The wave algorithm does not take into account the duration of the instrument's movements in time!