FX.co ★ Simplified wave analysis and forecast for GBP/USD and USD/CHF on October 20

GBP/USD

Analysis:

The British pound chart has been developing a downward wave since September 1. It completes a bearish design on a larger scale. The structure traces the first two parts (A-B). From October 14, a reversal wave structure is formed downwards, which should give rise to the final part (C) of the current wave.

Forecast:

A general downward trend is expected today. After a likely attempt to put pressure on the resistance zone, the exchange rate is expected to change and the price will move down. If the nearest support breaks through, the further decline to the next zone will continue today.

Potential reversal zones

Resistance:

- 1.2960/1.2990

Support:

- 1.2880/1.2850

- 1.2780/1.2750

Recommendations:

There are no conditions for buying the pound today. It is recommended to track the sell signals in the area of the calculated resistance.

USD/CHF

Analysis:

On the chart of the Swiss franc, a trend is developing to strengthen the exchange rate against the dollar, and no change in trends is expected in the near future. The last section of the main course started on September 25. A hidden correction has been completed in its structure. The price started forming conditions for continuing the downward move.

Forecast:

A price pullback to the resistance zone is expected in the next trading session. At the end of the day, a reversal and return to the support area are likely. Further break of the lower border of this zone within the current day cannot be completely excluded.

Potential reversal zones

Resistance:

- 0.9150/0.9180

Support:

- 0.9090/0.9060

Recommendations:

Today, trading on the franc market is only possible during sessions with a reduced lot. Sales of the tool are safer.

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 background shows the expected movements.

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