FX.co ★ Overview of GBP / USD for the week of May 31 on simplified wave analysis

Wave picture of the chart D1:

The vector of the main direction of the trend since October 2016 forms a bullish wave. The wave level of the price rise is very high, which makes it possible to classify it as a long-term trend. Since January 25, a downward corrective zigzag is forming.

The wave pattern of the graph H1:

The bearish wave, dominant since April 17, takes the place of the final part (C) in a larger scale construction. The wave has reached the minimum possible level of elongation. But the reversal signals on the chart have not yet been formed.

The wave pattern of the M15 chart:

The last unfinished wave section from May 10 is included in the descending figure of a larger scale. In the coming days, one can expect a short-term rollback upward.

Recommended trading strategy:

The reduction potential is limited. For inter-day trading, the short-term sales are possible. For other styles, it is better to abstain until clearer market signals appear.

Resistance zones:

- 1.3460 / 1.3510

Support zones:

- 1.3230 / 1.3180

Explanations to the figures: Simplified wave analysis uses a simple waveform, in the form of a 3-part 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!