FX.co ★ Review of GBP/USD for the week of July 18 via simplified wave analysis

Wave picture of the H4 chart:

On the chart of the main pair of pound, a bearish zigzag is formed from January 25. For some time, the wave will move to a larger scale movement.

The wave pattern of the H1 graph:

The level of the descending wave of April 17 is already prepared to move to a larger scale of the movement. In early July, a hidden correction (B) was completed at the minimum levels.

The wave pattern of the M15 chart:

Since July 9, a new wave has started in the main direction of the pair's movement. After a possible rollback up, the price in the coming days is waiting for a new round of decline.

Recommended trading strategy:

Proponents of long-term strategy before the opening of long positions should wait for the completion of the bearish correction. Trading on intraday fluctuations should focus on selling the pair.

Resistance zones:

- 1.3280 / 1.3330

Support zones:

- 1.2880 / 1.2830

Explanations to the figures: In a simplified wave analysis, waves consisting of 3 parts (A-B-C) are used. For analysis, 3 main TFs are used on each one, the last incomplete wave is analyzed. Zones show the calculated areas with the greatest probability of a turn.

Arrows indicate the wave counting according to the technique used by the author. The solid background shows the generated structure, the dotted - the expected movements.

Attention: The wave algorithm does not take into account the duration of the tool movements in time. To conduct a trade transaction, you need confirmation signals from your trading systems!

* The presented market analysis is informative and does not constitute a guide to the transaction.