FX.co ★ Simplified wave analysis and forecast for GBP/USD, USD/JPY, USD/CHF, GOLD on April 22

GBP/USD

Analysis:

The dominant upward trend on the British pound chart led the quotes to the lower border of a strong reversal zone. Since the end of February, the price has been forming a bearish correction. In its structure, the middle part (B) has been developing for the last two months. The downward section from April 20 has a reversal potential and may be the beginning of the correction's final part (C).

Forecast:

Today, we expect a primarily flat mood of the price movement. After the pressure on the support zone, you can expect the price to return to the area of the calculated resistance. Further, the pair's movement will return to the bearish rate again.

Potential reversal zones

Resistance:

- 1.3990/1.4020

Support:

- 1.3910/1.3880

Recommendations:

In the context of a change in the short-term trend of the pound, it is safer to trade a small lot in separate sessions. When buying, consider the limited upside potential. If there are clear reversal signals in the resistance area, it is recommended to change the trade vector.

USD/JPY

Analysis:

For most of last year, the Japanese yen major moved to the north of the price chart. Since March 9, its quotes form a complex correction in the form of a stretched plane. The structure of the correction to the current time looks complete. The price has reached the upper limit of the preliminary target zone.

Forecast:

Over the coming sessions, pressure is expected on the support zone. The formation of a reversal will follow this. At the end of the day or tomorrow, you can count on the beginning of price growth.

Potential reversal zones

Resistance:

- 108.40/108.70

Support:

- 107.70/107.40

Recommendations:

There are no conditions for selling the yen today. Until the end of the entire current wave, it is recommended to refrain from entering the pair's market. After the appearance of clear reversal signals, purchases are recommended.

USD/CHF

Analysis:

Over the past two months, the price of the Swiss franc has been correcting along a strong resistance zone. The figure "expanding horizontal triangle" was formed on the chart. The wave structure looks complete. The ascending section from April 19 has a reversal potential.

Forecast:

In the current day, a flat movement is expected, with a general downward vector. In the area of the support zone, you can expect a change of course. Tomorrow may be followed by the beginning of price growth.

Potential reversal zones

Resistance:

- 0.9190/0.9220

Support:

- 0.9130/0.9100

Recommendations:

Franc sales can be risky today. It is recommended to refrain from trading transactions until clear signals of buying the instrument appear.

GOLD

Analysis:

A bearish trend has dominated the gold market since August last year. Since the end of February, the price has been adjusted, forming a stretched plane. Last week, rising prices pushed through strong resistance, which turned into support.

Forecast:

In the next trading session, a sideways or weak downward vector is most likely. At the end of the day or tomorrow, you can expect a return to the ascending rate. The calculated resistance shows the lower limit of the preliminary target zone.

Potential reversal zones

Resistance:

- 1815.0/1820.0

Support:

- 1780.0/1775.0

Recommendations:

Until the current recovery is fully completed, sales of the instrument are premature. When buying, it is more reasonable to use a fractional lot.

Explanation: In the simplified wave analysis (UVA), waves consist of 3 parts (A-B-C). The last incomplete wave is analyzed. The solid background of the arrows shows the formed structure, and the dotted line shows the expected movements.

Attention: The wave algorithm does not take into account the duration of the tool movements in time!