FX.co ★ Simplified wave analysis and forecast for GBP/USD and USD/CHF on February 23

GBP/USD

Analysis:

As a result of the upward trend, the quotes of the British pound sterling reached the boundaries of the strong reversal section of the senior time frame. Quotes are selected to the upper limit of the zone. In the structure of the last segment of the trend wave from December 21, there is a need for an intermediate correction.

Forecast:

After an attempt to put pressure on the resistance zone, the price of the pair will turn and decline up to the calculated support. Then you can wait for a second attempt at price growth.

Potential reversal zones

Resistance:

- 1.4090/1.4120

Support:

- 1.3980/1.3950

Recommendations:

Trading on the British pound market today can be risky. It is recommended to refrain from selling during the pullback and look for buy signals at the end of it.

USD/CHF

Analysis:

The Swiss franc major market is dominated by a bearish trend. Its last section counts down from February 5. In the structure of this wave, the correction is nearing completion. The decline that began yesterday has a reversal potential and may be the beginning of another section of the main trend.

Forecast:

In the next trading sessions, the general sideways mood of movement between the nearest zones of the opposite direction is expected. An upward trend is more likely in the European session. By the end of the day, you can expect a change of direction, with a decrease in the support area.

Potential reversal zones

Resistance:

- 0.8990/0.9020

Support:

- 0.8920/0.8890

Recommendations:

Transactions on the franc market today are possible only within the framework of individual trading sessions. Purchases can be unprofitable. It is recommended to track signals for selling the pair in the area of the resistance zone.

Explanation: In 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.

Attention: The wave algorithm does not take into account the duration of the tool movements in time!