06.10.202010:13 Forex Analysis & Reviews: Simplified wave analysis and forecast for GBP/USD, USD/JPY, and USD/CHF on October 6

GBP/USD

Analysis:

Since March of this year, an upward trend wave has been developing on the chart of the British pound. Its last section counts down from September 10. By now, the quotes have reached the resistance zone, from which an intermediate pullback down may form.

Forecast:

Today, the pair is expected to move mainly upward. In the next session, a short-term decline in the support area is not excluded. A breakout of the upper limit of the resistance zone within the current day is possible but unlikely.

Potential reversal zones

Resistance:

- 1.3060/1.3090

Support:

- 1.2960/1.2930

Recommendations:

There are no conditions for selling the pound today. It is recommended to track the instrument purchase signals in the area of settlement support.

USD/JPY

Analysis:

A downward trend has been forming on the Japanese yen chart since spring. In the last 3 weeks, the price is adjusted. Quotes entered the area of the preliminary target zone, however, the wave structure is not complete. The end of the correction will occur after the complete formation of all parts of this wave.

Forecast:

Today, the price is expected to move in the corridor between the opposite price zones. A short-term pullback is possible in the European session. The price rise is more likely at the end of the day or tomorrow.

Potential reversal zones

Resistance:

- 106.10/106.40

Support:

- 105.50/105.20

Recommendations:

Trading on the pair's market today is possible only within the intraday with a reduced lot. Purchases remain the priority. When conducting transactions, you should take into account the limited potential of the current price rise.

USD/CHF

Analysis:

The downward wave from March 23 sets the dominant vector for short-term fluctuations of the Swiss franc. On September 25, the correction phase of the movement ended. The subsequent decline has a reversal potential. Quotes reached the area of the preliminary target zone.

Forecast:

In the next trading sessions, it expects the end of the downward mood of the movement, the formation of a reversal, and the beginning of a price rise. If the exchange rate changes, a short-term puncture of the lower border of the support zone is possible

Potential reversal zones

Resistance:

- 0.9200/0.9230

Support:

- 0.9140/0.9110

Recommendations:

There are no conditions for selling the franc today. After the reversal signals appear, purchases of the instrument are recommended. It is more reasonable to reduce the 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 one shows the expected movements.

Note: The wave algorithm does not take into account the duration of the instrument's movements in time!