FX.co ★ Simple wave analysis and forecast for GBP/USD, USD/JPY, USD/CHF, and GOLD for March 4, 2021

Analysis:

A hidden correction on GBP/USD is coming to an end. The upward trend that started on February 26 is likely to reverse in the near future. It could mark the beginning of the final part of the main wave.

Forecast:

Traders are likely to actively trade the pair at the end of the day or tomorrow. The price can move sideways, but not far from the support zone, during the European session. Then, the pair is expected reverse and the upward trend may start.

Potential reversal zones

Resistance:

- 1.4040/1.4070

Support:

- 1.3920/1.3890

Recommendations:

There are no conditions for selling the pound in the market today. At the end of downward pullbacks, one should look for buy signals

USD/JPY

Analysis:

The upward trend is the main trend on USD/JPY. The price has been correcting since the start of the year. A zigzag has formed within the wave structure. A price reversal is highly likely in the higher time frame.

Forecast:

In the upcoming trading sessions, the main trend is expected to extend. The resistance zone may be brought under pressure. At the end of the day, a reversal is highly likely. The price may start moving in a downward trend.

Potential reversal zones

Resistance:

- 107.30/107.60

Support:

- 106.70/106.40

Recommendations:

One should refrain from selling the yen until there are clear reversal signals. When buying the pair, one should take into account a limited upside potential.

USD/CHF

Analysis:

The downward trend has been the main trend on USD/CHF since March last year. The price has been pulling back up since January 6, 2021. The price movement is within the correction territory of the last trend section. The upward wave structure is not complete.

Forecast:

The bullish trend is expected to continue in the next 24 hours. A short-term downward movement may occur during the European session. The price is unlikely to go beyond the calculated support. A strong upward movement can take place by the end of the day or tomorrow.

Potential reversal zones

Resistance:

- 0.9230/0.9260

Support:

- 0.9170/0.9140

Recommendations:

There are no conditions for selling the Swiss franc in the market.

Analysis:

The downward trend has been the main trend since August last year. By now, gold has reached the support zone in the higher time frame. A hidden correction within the wave structure is about to end.

Forecast:

In the first half of the day, a sideways movement is highly likely. The support zone can be brought under pressure. At the end of the day, the trend can reverse. In such a case, the price may rise to the resistance zone.

Potential reversal zones

Resistance:

- 1770.0/1780.0

Support:

- 1710.0/1700.0

Recommendations:

There are no conditions for selling gold in the next 24 hours. Until there are clear buy signals, it can be highly risky to open buy deals. Therefore, it will be safer to trade using smaller lot sizes.

Note: In simple wave analysis, we review a three-wave pattern labeled A-B-C and analyze the last unfinished wave. Straight arrows show the formed wave structure, while dashed lines show the expected movements.

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