Technical analysis of GBP/USD for November 6, 2014

Trading recommendations:

The GBP/USD pair has still moved between the area of 1.5990 and 1.5897.
 It should notice that the levels of 1.5897 and 1.5868 represent the weekly support 1 
and the double bottom respectively in H1 chart. So, resistance had set at the levels 
of 1.5988 (38.2% Fibonacci retracement levels). Therefore, sell below the level 
of 1.5988 with the first target at the 1.5900 price,then It will call for a downtrend in 
order to continue its bearish movement towards 1.5868 in order to test 
the double bottom. At the same time, the stop loss should be placed at the level 
of 1.6039 (above the weekly pivot point). 
On the other hand, the support will set around the spot of 1.5800; then buy above 
1.58 (if the trend fails to close below it) with a target at 1.5866 in coming days.

Observations:

The resistance will set at the level of 1.5988 today.The double top is going to set at 
the 1.5868 price.

The area of 1.5988 is useful spot to sell in the long term.We expect a range of 87 pips 
on November 6, 2014.

It should be noted that if there is no significant news to influence, the market price will 
be moving from pivot point to resistance 1 or support 1. But if there is significant news 
to influence, 
the market price may go straight through resistance 1 or support 1 and reaches 
resistance 2 or support 2 and even resistance 3 or support 3.

Wave analysis and forecast of 31.10 – 07.11

EUR/USD Wave analysis and forecast of 31.10 – 07.11: Decline in the pair continues.Estimated pivot point is at the level of 1.2770.

Our opinion: Sell the pair from correction below the level of 1.2770 with the targets of 1.25 – 1.24 – 1.23.

Alternative scenario: Breakout and consolidation of the price above of the level of 1.2770 will enable the price to continue the rise up to the levels of 1.2950 – 1.30.

Analysis: Presumably, the formation of the final fifth wave of the “bearish” momentum continues on the daily timeframe. Locally, the third wave is being formed. If this assumption is correct, after the completion of the local correction it makes sense to expect that the pair will decline in the fifth wave. Critical level for this scenario is 1.2770. 

 

GBP/USD Wave analysis and forecast of 31.10 – 07.11: The pair is undergoing correction. The rise in the pair is possible.Estimated pivot point is at the level of 1.5870.

Our opinion: Buy the pair from correction above the level of 1.5870 with the targets of 1.6380 – 1.64.

Alternative scenario: Breakout and consolidation of the price below the level of 1.5870 will enable the price to continue the decline to the levels of 1.58 – 1.57 as part of the “bearish” trend.

Analysis: Presumably, the formation of the correction as the wave B is ongoing. Locally it is likely that the formation of the wave (b) of a is nearing completion. If this assumption is correct and the pair does not fall below the critical level of 1.5870, after the completion of the wave (b) the price can grow up to the levels of 1.6380 – 1.64. 

 

USD/CHF Wave analysis and forecast of 31.10 – 07.11: The pair is likely to grow.Estimated pivot point is at the level of 0.9439.
Our opinion: Buy the pair from correction above the level of 0.9439 with the target of 0.97 – 0.98.

Alternative scenario: Breakout and consolidation below of the level of 0.9439 will make the pair continue to decline to the level of 0.9370.

Analysis: Based on the forming wave structure we can assume that the fifth wave of the “bullish” momentum is being formed; it is likely that within this wave the third wave iii of 5 is being developed. If this assumption is correct, the pair will continue to rise up to the levels of 0.97 – 0.98. Critical level for this scenario is the level of completion of the second wave – 0.9439. 

 

USD/JPY Wave analysis and forecast of 31.10 – 07.11: Uptrend dominates.Estimated pivot point is at the level of 108.77.

Our opinion: Buy the pair from correction above the level of 108.77 with the target of 112.00 – 112.60.

Alternative scenario: Breakout and consolidation of the price below the level of 108.77 will enable the pair to continue the decline to the levels of 107.56 – 106.20.

Analysis: Presumably, the formation of the diagonal triangle within the fifth wave of the senior level is nearing completion. Locally, the third wave is being developed. If this assumption is correct the pair can go up to the levels of 112.0 – 112.60.  

 

USD/СAD Wave analysis and forecast of 31.10 – 07.11: Uptrend continues.Estimated pivot point is at the level of 1.1159.

Our opinion: Buy the pair above the level of 1.1159 with the target of 1.14 – 1.15.

Alternative scenario: Breakout and consolidation of the price below the level of 1.1159 will enable the pair to continue the decline to the levels of 1.11 – 1.1050.

Analysis: The formation of the local correction as the fourth wave iv of 5 has completed. Locally, price reversal is expected as well as small one-two waves. If this assumption is correct and the price does not break down critical level of 1.1159, the pair can rise to the levels of 1.14 – 1.15 in the fifth wave v of 5.