16.01.201802:51 Forex Analysis & Reviews: Trade review for January 15 by simplified wave analysis

Review and forecast for GBP / USD

The rate of the major pair British currency has come close to an important point, where its uptrend awaits for a test of strength. Passing along this section of the chart, a strong price level has repeatedly changed its directions to trends of different scale. Even if the upward trend continues, the price of the pair could not escape the period of corrective decline in the coming weeks.

Since September 15 last year, the beginning of the bearish reversal pattern can be seen in the chart of the instrument, showing the formation of the middle part (B). The wave has an incorrect form of structure, with an update in the starting point of the entire structure.

There is a high probability of continuing the price increase today which started on the last trading day. The calculated resistance zone can be found at the lower boundary of the potential reversal zone. By the end of the current day, there is a sharp increase in the possible reversal and the beginning of the decline.

Boundaries of resistance zones:

- 1.3800 / 1.3830

Boundaries of support zones:

- 1.3700 / 1.3670

EUR / JPY outlook and forecast

The upward trend, which dominates the cross-chart, continues to move the quotes near the preliminary target section of the chart. Since April last year, the price of the pair has added to its quotation more than 15% of the cost. From the lower boundary of the accumulation of counter levels, the price is separated less than three price figures. Taking into account that the recently accomplished correction has been completed on the chart, a new surge in purchases of the instrument can be expected in the coming week.

Today, a flat price movement is expected at the nearest trading session. The lower limit of lateral oscillations is within the support zone. By the end of the day, we can expect for the resumption of the ascending sentiment of the pair.

Boundaries of resistance zones:

- 136.00 / 136.30

Boundaries of support zones:

- 134.90 / 60

Explanations to the figures: For simplified wave analysis, a simple waveform is used that combines 3 parts (A; B; C). Of these waves, all kinds of correction are composed and most of the impulses. On each considered time frame the last and incomplete wave is analyzed.

The areas marked on the graphs are indicated by the calculation areas in which the probability of a change in the direction of motion is significantly increased. Arrows indicate the wave counting according to the technique used by the author. The solid background of the arrows indicates the structure formed, the dotted one indicates the expected wave motion.

Attention: The wave algorithm does not take into account the duration of the tool movements in time. The forecast is not a trading signal! To conduct a trade transaction, you need to confirm the signals of your trading systems.

* The presented market analysis is informative and does not constitute a guide to the transaction.