FX.co ★ Simplified wave analysis and forecast for GBP/USD and AUD/USD on July 29

GBP/USD

Analysis:

On the chart of the British pound since June 10, a downward wave has formed. The price is adjusted for the entire current month. This movement does not yet go beyond the correction. However, the price is approaching the level beyond which the wave structure will be revised. Quotes are located at the lower border of the strong potential reversal zone. Alternatively, a reversal and the beginning of a price decline can occur here.

Forecast:

A further breakout without the formation of an intermediate pullback is unlikely. Today, we can expect a general sideways course of price movement between the nearest counter zones. A downward flat vector is expected in the next sessions.

Potential reversal zones

Resistance:

- 1.2960/1.2990

Support:

- 1.2890/1.2860

Recommendations:

Today, within the intraday, short-term sales of the pound with a reduced lot are possible. It is safer to refrain from entering the market during the pullback down and enter long positions at the end of it.

AUD/USD

Analysis:

Quotes of the Australian dollar continue their ascent to the "north" of the price chart. After the hidden correction is completed in mid-June, the price forms a new section of the main trend. The next resistance level has been reached, along which the price forms an intermediate correction.

Forecast:

Today in the first half of the day, the most likely sideways movement between oncoming zones. A break below the support area is not worth waiting for. By the end of the day, the probability of a return to the main rate increases, with a repeated attempt to pressure the resistance zone.

Potential reversal zones

Resistance:

- 0.7190/0.7220

Support:

- 0.7130/0.7100

Recommendations:

Sales of "Aussie" today may be unprofitable and are not recommended. The best tactic is to refrain from trading during the pullback, with the search for buy signals in the area of settlement support.

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!