FX.co ★ Overview of the currency pair GBP / USD for the week of May 23 via simplified wave analysis

Wave picture of the chart D1:

The daily scale of the chart shows an upward wave, since October 2016, which sets the direction of the pair's trend. The upside potential is very high. In recent months, the correctional part (B) has been formed.

The wave pattern of the graph H1:

The last wave on this scale is bearish. Starting April 17, it completes the wave zigzag of a larger wave of TF N4. The price reached the upper limit of the potential reversal zone.

The wave pattern of the M15 chart:

Within the framework of the main trend, a hidden correction is formed on the "south" chart. In the next few days you can wait for the final breakthrough.

Recommended trading strategy:

Medium-term traders need to wait for the completion of the corrective stage of the movement. Short-term trading is not recommended because of limited growth potential. It is better to wait for the completion of the rollback and look for signals for sale.

Resistance zones:

- 1.3570 / 1.3620

Support zones:

- 1.3380 / 1.3330

Explanations to the figures: Simplified wave analysis uses a simple waveform, in the form of a 3-piece zigzag (ABC). At each TF the last incomplete wave is analyzed. Zones show the calculated areas with the greatest probability of a turn.

Arrows indicate the wave counting according to the technique used by the author. The solid background shows the generated structure, dotted - the expected wave motion.

Attention: The wave algorithm does not take into account the duration of the tool movements in time. To conduct a trade transaction, you need confirmation signals from your trading systems!