FX.co ★ Simplified wave analysis of GBP/USD and USD/CHF on November 6th

GBP/USD

Analysis:

The upward wave since the beginning of August sets the dominant rate of the British pound. The wave has a high wave level and will eventually move to a medium-term scale. In recent weeks, the price forms a counter area, which can form correction of the entire previous rise. The wave has the form of a flat pennant.

Forecast:

The pound correction has entered the final phase. The formation of a reversal pattern and the beginning of a price rise is expected over the next day. Before that, short-term pressure on support is not excluded. It is possible to synchronize the reversal with the release time of important news.

Potential reversal zones

Resistance:

- 1.2930/1.2960

Support:

- 1.2860/1.28300

Recommendations:

Selling the pound today can be very risky. It is recommended that the main attention be paid to the search for signals to buy an instrument.

USD/CHF

Analysis:

A stretched plane has been developing on the franc chart since the end of June. The final part (C) of the wave structure is formed. Within its framework, a correction has developed over the past month, which has not yet been completed.

Forecast:

In the first half of the day, the completion of the upward section is expected. By the end of the day, the probability of a rate change and a price decline in the area of the support zone increases.

Potential reversal zones

Resistance:

- 0.9950/0.9980

Support:

- 0.9880/0.9850

Recommendations:

Purchases today are possible when trading within the session, a reduced lot. In the resistance area, it is recommended to monitor the reversal signals and search for the selling points of the pair.

Explanations: In the simplified wave analysis (UVA), the waves consist of 3 parts (A-B-C). The last unfinished wave is analyzed. The solid background of the arrows shows the formed structure, dotted – the expected movement.

Attention: The wave algorithm does not take into account the length of time the tool moves!