FX.co ★ Simplified wave analysis and forecast for GBP/USD, USD/JPY, USD/CHF, Gold on May 11

GBP/USD

Analysis:

On the chart of the pound, a correction in the form of a horizontal triangle has formed within the dominant bullish trend since the end of February. The price rise that began on May 3 exceeded the pullback level, putting an end to this wave model. The pair's quotes have now reached the lower limit of the strong potential reversal zone.

Forecast:

In the first half of the day, there is a high probability of a sideways course of the pair's movement, with a general downward vector. After reaching the calculated support, you can expect a reversal and a second rise in the area of the resistance zone.

Potential reversal zones

Resistance:

- 1.4160/1.4190

Support:

- 1.4080/1.4050

Recommendations:

In a bullish trend, selling the British pound carries a high share of risk. It is more reasonable to reduce the lot as much as possible. It is recommended to focus on searching for buy signals in the area of the support zone.

USD/JPY

Analysis:

The upward momentum algorithm sets the price movement vector of the main pair of the Japanese yen since January. The unfinished section on the main course counts down from April 19. Within its framework, the price is adjusted from the beginning of the current month.

Forecast:

The price is expected to move in a side corridor between the nearest oncoming zones in the coming day. After attempting to put pressure on the resistance zone in the first half of the day, we can expect a change in direction and a decline in the support area.

Potential reversal zones

Resistance:

- 109.20/109.50

Support:

- 108.60/108.30

Recommendations:

Trading in flat conditions can be unprofitable. It is preferable to use a fractional lot in transactions. The optimal tactic is to refrain from entering the pair's market until clear buy signals appear in the area of the support zone.

USD/CHF

Analysis:

The global trend of the Swiss franc in the main pair against the dollar aims to strengthen it. In the short term, the major price is adjusted up. The downward section from April 1 does not go beyond this correction yet. The price has reached the upper limit of strong support for a large TF.

Forecast:

In the upcoming sessions, the bearish course is expected to end in the support area. With a high probability, we can then expect a change in direction and price growth in the area of the resistance zone.

Potential reversal zones

Resistance:

- 0.9060/0.9090

Support:

- 0.8990/0.8960

Recommendations:

Today, the price reduction has exhausted its potential, so the franc sales are unpromising. When buying, it is more reasonable to use a fractional lot, closing deals at the first signals of a reversal. It is optimal to refrain from entering the pair's market.

Gold

Analysis:

The upward wave from February 26 on the gold chart exceeded the correction level of the last part of the main trend and continues to gain a wave level. The lower boundary of the target area is the far calculated resistance zone.

Forecast:

In the first half of the day, there is a high probability of a "sideways" in the gold market. A short-term decline is possible, up to the support zone. At the end of the day or tomorrow, we can expect the resumption of the upward vector, with a breakthrough of the nearest resistance zone.

Potential reversal zones

Resistance:

- 1875.0/1880.0

- 1845.0/1850.0

Support:

- 1815.0/1810.0

Recommendations:

Selling gold today is risky and not recommended. At the end of the upcoming rollback, it is suggested to track the signals for buying the instrument.

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 one shows the expected movements.

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