empty
09.06.2025 12:55 AM
British Pound: Weekly Preview

This image is no longer relevant

In the United Kingdom, the news background for the upcoming week will be much more interesting, although I do not believe it will significantly impact market sentiment. The pound continues to enjoy demand because the U.S. dollar is currently in no demand. Consequently, the worse and more absurd the news coming out of the United States, the stronger the pound and many other currencies will grow against the dollar.

Nevertheless, I would like to emphasize the relatively important reports regarding British unemployment, wages, GDP, and industrial production. Personally, I am most interested in the GDP and unemployment reports. According to some forecasts, unemployment could rise to 4.6% in April, undoubtedly bad for the British economy and the pound. However, I will reiterate that the negative news background from Britain does not have much influence on the pound's exchange rate because the negative background from the U.S. is much stronger and more important.

As with the Eurozone and the euro, the market has long been accustomed to the fact that the British economy is not performing impressively. It has shown consistently weak growth rates, so no one has expected high figures from the economic indicators for quite a long time. In 2025, they have virtually ceased to matter to market participants because of Donald Trump, who makes decisions and statements every week that reinforce the market's belief in the necessity of getting rid of the U.S. dollar as quickly as possible.

In my opinion, the upward segment of the trend is not yet complete, so we should anticipate a new rise in the instrument on Monday or any other day of the week. I see no signs of de-escalation of the Global Trade War and, therefore, no reason to buy the U.S. dollar.

This image is no longer relevant

Wave Structure for EUR/USD:

Based on the analysis of EUR/USD, I conclude that the instrument continues to build an upward trend segment. In the near term, the wave structure will entirely depend on the news background related to Trump's decisions and U.S. foreign policy. The formation of wave 3 of the upward trend segment has begun, and its targets may extend up to the 1.2500 area. Therefore, I am considering buying positions with targets above 1.1572, which corresponds to 423.6% of Fibonacci's retracement and is even higher. It should be noted that de-escalation of the trade war could reverse the uptrend, but for now, there are no signs of a reversal or de-escalation.

This image is no longer relevant

Wave Structure for GBP/USD:

The wave structure of the GBP/USD instrument has changed. We are now dealing with an upward, impulsive segment of the trend. Unfortunately, under Donald Trump, the markets may face many more shocks and reversals that do not correspond to any wave structure or type of technical analysis, but for now, the working scenario and structure remain intact. The formation of an upward wave 3 continues with the nearest target at 1.3708, corresponding to 200.0% Fibonacci of the presumed global wave 2. Therefore, I am still considering buying positions, as the market has yet to show a desire to reverse the trend.

Main principles of my analysis:

  1. Wave structures should be simple and clear. Complex structures are hard to trade and often bring changes.
  2. If there is a lack of confidence in the market, it is better to refrain from entering.
  3. There is never 100% certainty in the direction of movement. Don't forget to set Stop Loss orders.
  4. Wave analysis can be combined with other types of analysis and trading strategies.
Chin Zhao,
Analytical expert of InstaForex
© 2007-2025
Summary
Urgency
Analytic
Alexander Dneprovskiy
Start trade
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

GBP/USD Overview – July 23: The Powell–Trump Showdown: A Matter of Principle and Honor

On Tuesday, the GBP/USD currency pair maintained its upward bias, although it failed to post significant gains throughout the day. However, this is not an issue. The U.S. dollar

Paolo Greco 03:33 2025-07-23 UTC+2

EUR/USD Overview – July 23: Donald Trump Keeps Promising and Pressuring the EU

On Tuesday, the EUR/USD currency pair maintained the beginning of a new leg of its upward trend. A day earlier, the price had consolidated above the moving average line, which

Paolo Greco 03:33 2025-07-23 UTC+2

The EU Prepares an "Anti-Coercion Package"

As I mentioned in the previous review, the European Union has tools to respond to Donald Trump. European officials' reluctance to enter into a full-scale conflict is understandable. First

Chin Zhao 00:53 2025-07-23 UTC+2

Trump Is Squeezing the EU Dry

When Donald Trump comes to power, you can't help but feel glad you don't live in the United States of America. Of course, that's a joke—but as with any joke

Chin Zhao 00:53 2025-07-23 UTC+2

AUD/USD: What Did the RBA Minutes Reveal?

In the first half of the day, the Australian dollar showed a downward dynamic against the greenback, despite the latter's general weakness. The U.S. Dollar Index remains under pressure, which

Irina Manzenko 00:13 2025-07-23 UTC+2

The Dollar Will Burst Soon

The more the U.S. dollar falls, the more its decline resembles a bubble. This view, shared by HSBC, is hard to disagree with. There is a prevailing consensus

Marek Petkovich 00:13 2025-07-23 UTC+2

GBP/JPY. Analysis and Forecast

The GBP/JPY pair continues its upward movement, trading just below the psychological level of 199.00. The pair is gaining strength due to a weakening Japanese yen, which is under pressure

Irina Yanina 19:44 2025-07-22 UTC+2

XAU/USD. Analysis and Forecast

On Tuesday, gold is pulling back from the round $3400 level, which acted as resistance. However, in the lead-up to the August 1 deadline for the introduction of new tariffs

Irina Yanina 12:08 2025-07-22 UTC+2

Trump Continues Seeking Ways to Pressure China Through Other Countries

According to media reports, President Donald Trump's ongoing efforts to pressure China via its supply chain trading partners threaten to undermine the country's growth and much of its exports

Jakub Novak 10:30 2025-07-22 UTC+2

The European Union Takes on China

While the euro is gradually recovering after a major sell-off observed for most of this month, recent data shows that the latest round of EU sanctions has targeted a number

Jakub Novak 10:24 2025-07-22 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.