08.05.201808:31 Forex Analysis & Reviews: Weekly review of the GBP / USD pair of May 8 on simplified wave analysis

The ascending section of the chart of the pound sterling major pair has a potential higher than the level of the pullback on the last section of the bearish trend. The most likely scenario is the formation of a reversal wave structure to change the direction of the main trend.

In the year ago, there were no upward signals which confirm the version of the wave continuation. Within the framework of an upward short-term wave, a latent correction develops in the last six months. It is necessary to increase the scale of the current wave.

The final part of the correction was expressed in the active price reduction last week. To date, the upper limit of the settlement reversal zone has been reached. In the coming days, you can wait for the completion of the price decline, as well as, reversal and the beginning of the growth rate. The high probability of an ascending movement character will be estimated in reference to the momentum.

Boundaries of resistance zones:

- 1.3920 / 1.3970

Boundaries of support zones:

- 1.3510 / 1.3460

Explanations of the figures:

For simplified wave analysis, a simple waveform is used that combines 3 parts namely A, B, and C. All types of correction are created and most of the impulses can be found in these waves. Every time frame is considered and the last incomplete wave is analyzed.

The areas marked on the graphs indicate the probability of a change in the direction of motion has significantly increased as calculated in the areas. Arrows indicate the wave counting following the technique used by the author. A solid background of the arrows signifying the structure has been formed while the dotted one means the expected wave motion.

Attention: The wave algorithm does not take into account the duration of the movement of tools in time. The forecast is not a trading signal! To conduct a bargain, you need to confirm the signals used by your trading systems.