Simple wave analysis and forecast for GBP/USD and USD/CHF for February 16, 2021

GBP/USD

Analysis:

The pair has reached the wide resistance zone in terms of the dominant bullish trend that started in March last year. The analysis of the wave structure shows that a correction is needed. There has been no reversal signs on the chart.

Forecast:

The upward trend is expected to continue today. A short-term correction may occur during the European session. The price is unlikely to go below the calculated support level. The pair is expected to advance at the end of the trading day.

Potential reversal areas

Resistance:

- 1.4020/1.4050

Support:

- 1.3900/1.3870

Recommendation:

The market sentiment toward GBP/USD remains bullish. Until there is a clear reversal signal in the market, one should refrain from selling the instrument.

USD/CHF

Analysis:

The USD/CHF has been moving in the downward trend since February 5. The pair may reverse any time soon. Since the start of the previous week, the wave structure has been moving against the trend.

Forecast:

The upward pullback is expected to end today. The price may reverse. In such a case, the downward trend will extend. The calculated support level indicates the lower border of the expected daily range.

Potential reversal areas

Resistance:

- 0.8920/0.8950

Support:

- 0.8850/0.8820

Recommendation:

One should refrain from buying USD/CHF today. In the zone of the calculated resistance level, traders are recommended to track emerging sell signals.

Note: In the 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!