Simplified wave analysis for GBP/USD and USD/JPY for Dec 26, 2019

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GBP/USD

Analysis:

A downward wave has been forming on the chart of the British pound since December 13. It can take the place of a correction in the main structure or give rise to a wave of a new short-term trend. The price reached the support zone, from which the formation of an upward pullback began.

Forecast:

In the coming day, the most likely scenario for the price movement will be a planned depreciation in the side corridor between the nearest zones. A breakthrough in the upper border of the resistance zone is expected in the next days but it is possible today.

Potential reversal zones

Resistance:

– 1.2980/1.3010

Support:

– 1.2900/1.2870

Recommendations:

Today, only intra-session trading is possible on the pound market. Purchases have more potential. You need to track the signals for them only after the price rollback is formed.

USD/JPY

Analysis:

The current upward wave of the instrument since the beginning of August has the potential for further growth. The price of the yen has reached the zone of a potential reversal, which began to form a hidden correction. Its structure is not complete.

Forecast:

Today, there is a high probability that the current flat sentiment from last week will continue. In the first half of the day, a downward vector is likely. By the end of the day, the exchange rate is expected to change and the price will start to rise.

Potential reversal zones

Resistance:

– 109.80/110.10

Support:

– 109.20/108.90

Recommendations:

The main attention today in the yen market should be paid to the search for buy signals. Sales are possible with a small lot, taking into account the probability of sharp counter-rollbacks.

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Explanations: 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, the dotted background shows the expected movements.

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

The material has been provided by InstaForex Company – www.instaforex.com

Source:: Simplified wave analysis for GBP/USD and USD/JPY for December 26

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