FX.co ★ Simplified wave analysis and forecast for GBP/USD on May 9

When analyzing the wave structure of the unfinished downward wave of the short-term scale from March 13, it is clear that the first 2 parts (A + B) are fully formed. Since May 3, the final part (C) develops.

Forecast:

Before the beginning of the active movement of the course of the pair downwards, the reversal structure of a smaller scale should be completely completed. Today, it is expected to complete the price reduction and the beginning of a counter move.

Recommendations:

Today, sales are possible but their potential is limited by settlement support. Once the price reaches this section of the chart, intraday supporters can start tracking buy signals. Proponents of longer trades are advised to refrain from trading and wait for the recovery to complete.

Resistance zone:

- 1.3070/1.3100

Support zone:

- 1.2970/1.2940

Explanations to the figures: Waves in the simplified wave analysis consist of 3 parts (A – B – C). The last unfinished wave is analyzed. Zones show areas with the highest probability of reversal. The arrows indicate the wave marking according to the method used by the author, the solid background is the formed structure, the dotted ones are the expected movements.

Note: The wave algorithm does not take into account the duration of tool movements over time.