The downward wave of August 22 remains the driving force behind the price movement of the British pound in recent weeks. Until it goes beyond the correction of the previous bullish wave. In its structure, in recent days, an incorrect kind of correction has been developing, the final part of which worked out yesterday.
In the upcoming trading sessions, the upward mood of the movement, the formation of a reversal and the beginning of the downward movement are expected. A change in course may be accompanied by a short-term puncture of the upper boundary of the resistance.
When buying a pound, the limited upside potential should be considered. It is recommended that you focus today on finding the most profitable selling points for the instrument.
The perspective direction of the trend of the Japanese yen is given by the rising wave of August 26. In the structure of the larger bullish model dated August 6, this section gave rise to the final part (C). Within its framework, the correctional part of the movement has been formed in recent days.
Today, it is expected to continue the flat decline of the last days, until its full completion. By the end of the day, the probability of a change in the movement vector and the beginning of the price move upward increase. A change in the vector of the intraday trend should be expected within the boundaries of the support zone.
It is more reasonable for traders trading in large TFs to refrain from entering the pair's market for the period of the current decline. Trading today is possible only within the framework of trading sessions. Until clear reversal signals appear, the main direction of transactions remains the pair's sales.
USD / CHF
On the chart of the Swiss franc, an upward plane has been forming since June 25. Its structure is relatively complex. To date, the first 2 parts (A + B) have been completed, the final part (C) is being developed.
The preliminary calculation of the target zone gives the beginning of 101 price figures as a guideline for its lower boundary. Considering the nature of the price increase close to the impulse, the magnitude of the current pullback is expected to be minimal. By the end of the current day, its completion and the beginning of the growth rate are likely.
Sales of the franc today can be quite risky, they should reduce the size of the lot. In the area of the settlement support zone, it is recommended to track the reversal signals to find entry points to long positions.
Explanations to figures: Waves in the simplified wave analysis (UVA) consist of 3 parts (A-B-C). Analyzes the last unfinished wave. Zones show the areas with the highest probability of reversal. Arrows indicate the wave count used by the author to the method, a solid background structure for determining the expected movement.
Attention: The wave algorithm does not take into account the length of time the instrument moves.