empty
InstaForex Loprais Team - Official participant of the Dakar rally
InstaForex Loprais Team - Official participant of the Dakar rally
This section is designed for those who are just starting their trading journey. InstaForex educational and analytical materials will meet your training needs. Our experts' recommendations will make your first steps to trading success simple and clear.
Start as Beginner
How to start trading
Useful information
Training and recordings
InstaForex innovative services are an essential element of productive investment. We strive to provide our clients with advanced technical capabilities and make their trading routine comfortable as we are recognized as the best broker in this regard.
Become Investor
PAMM System
ForexCopy System
Passive investments
Partnership with InstaForex is beneficial and top-tier. Join our affiliate programs and enjoy bonuses, partner rewards, and the possibility to travel with the team of the world-renowned brand.
Become Partner
Main Page
Partner Area
Advantages for Affiliates
Registration
This section contains the most lucrative offers from InstaForex. Receive bonuses when topping up an account, compete with other traders, and get real prizes even when trading in a demo account.
All Promo Campaigns
Bonuses
Contests
Events
Holidays with InstaForex are not only pleasant but also useful. We offer a one-stop portal, numerous forums, and corporate blogs, where traders can exchange experiences and become successfully integrated into the Forex community.
Full details
Forums
We are in social networks
Forex humour
Forex Portal
InstaForex is an international brand created in 2007. The company provides services for online FX trading and is recognized as one of the world's leading brokers. We have won the trust of more than 7,000,000 retail traders, who have already appreciated our reliability and focus on innovations.
Learn More
History
Why Choose Us
InstaSport
Regulation
Company News
Awards
InstaForex Stars
InstaForex Offline
Key documents
Social Responsibility
07.11.2024 08:24 PM
Analysis of GBP/USD on November 7, 2024
Open trading account Open demo account

This image is no longer relevant

The wave structure of GBP/USD remains complex and continues to evolve into a more extended pattern. At present, there is a strong likelihood that a downward trend is beginning, as the successful breakout of wave b's low within wave c indicates the market's readiness to form not merely an individual wave but a sustained trend.

Since April 22, a series of a-b-c waves has been observed, with smaller a-b-c waves nested within them. Considering the wave structure of EUR/USD, which suggests the formation of a downward wave set, the current conditions present a favorable opportunity to initiate a new trend. If this assumption holds true, the first wave of this trend is currently in development.

The pound continues to be influenced by the Bank of England, which has been hesitant to reduce rates. However, the monetary policies of the Bank of England and the Federal Reserve in the coming months may not favor a weaker U.S. dollar. The market has long anticipated a rate reduction by the Federal Reserve, pushing the dollar to its lowest levels. At this stage, I anticipate a strengthening of the U.S. dollar.

The Pound Responds Positively to the "Basic" Rate Reduction

The GBP/USD pair rose by 90 basis points on Thursday, which seems rather peculiar. However, this week has already seen a series of unusual market movements. These movements began last Friday when demand for the U.S. dollar surged despite a disappointing Nonfarm Payrolls report. On Monday, the market showed some signs of stabilization. By Wednesday, however, Donald Trump's victory in the U.S. presidential election triggered a dollar rally. For the remainder of Wednesday and throughout Thursday, the market appeared to stabilize the U.S. dollar's exchange rate.

There are no clear reasons for the immediate strengthening of the dollar following Trump's victory, nor are there compelling explanations for the pound gaining strength amid the Bank of England's monetary easing measures. Since last Friday, market movements have aligned with the ongoing wave structure but show a weak correlation with the current news context.

Earlier today, it was announced that the Bank of England has implemented a second round of easing and is prepared to continue cutting rates if the downward inflation trajectory persists. At the same time, Andrew Bailey projected that inflation might accelerate by the end of the year, as earlier declines in oil prices likely contributed to slower price growth. However, the Bank of England remains focused on the overall inflation trajectory. If inflation continues to decline, monetary easing will proceed without pause. In my opinion, the market could develop a more robust corrective structure before initiating a new impulsive wave.

This image is no longer relevant

General Conclusions

The wave structure of GBP/USD remains intricate. The current structure suggests that the trend segment from April 22 may have taken the form of an a-b-c wave pattern, which would indicate its completion. From the 1.3440 level, corresponding to 127.2% on the Fibonacci scale, traders could have begun opening short positions gradually. At this point, it may be prudent to wait for a corrective upward wave before attempting to sell the pair again. Nevertheless, the decline may persist for an extended duration within the first wave, which is almost certainly impulsive. Yesterday, I highlighted 1.2800 as a potential target, and prices have already reached 1.2832.

On a larger wave scale, the wave structure has transformed. It now appears that a complex and extended upward corrective structure is forming. At present, this structure resembles a three-wave pattern, but it may evolve into a five-wave formation, which could take several months or longer to fully develop.

Key Principles of My Analysis:

  1. Wave structures should be straightforward and easy to interpret. Complex structures are challenging to trade and are often prone to revisions.
  2. If there is uncertainty about the market direction, it is better to stay out.
  3. Absolute certainty in market movement is impossible. Always use protective Stop Loss orders.
  4. Wave analysis can be effectively combined with other analytical methods and trading strategies.
Chin Zhao,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
All Analytics
Fundamental analysis
GBP/USD Pair Overview – March 20: Bank of England Vote May Cool Bullish Sentiment The GBP/USD currency pair traded very calmly on Wednesday, considering the evening movements. As a reminder, we are not analyzing the results of the Federal Reserve meeting
Paolo Greco
03:18 2025-03-20 +02:00
1090
Fundamental analysis
EUR/USD Pair Overview – March 20: The Euro Holds a Strong Leadership Position On Wednesday, the EUR/USD currency pair experienced a slight pullback but failed to consolidate below the moving average line. As per tradition, we will not analyze the outcome
Paolo Greco
03:18 2025-03-20 +02:00
1105
Breaking Forecast Trading Plan Cryptocurrencies USD/RUB Russian Economy Video Analysis
Trading Instruments
EURUSD GBPUSD USDCHF USDCAD USDJPY AUDUSD EURGBP EURJPY NZDUSD EURNZD Silver Gold #CL #USDX COVID-19 Bitcoin
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

GBP/USD Analysis – March 18th

The wave structure for GBP/USD remains somewhat ambiguous yet generally clear. At present, there is a high probability that a long-term downward trend is forming. Wave 5 has taken
Chin Zhao 18:45 2025-03-18 UTC+2

EUR/USD Analysis – March 18th

The wave structure on the four-hour chart is at risk of transforming into a more complex formation. A new downward wave structure began forming on September 25, taking the shape
Chin Zhao 18:43 2025-03-18 UTC+2

EUR/USD Analysis – March 17th

The 4-hour wave analysis for EUR/USD is at risk of transforming into a more complex structure. A new downward trend began on September 25, taking the form of a five-wave
Chin Zhao 17:34 2025-03-17 UTC+2

Weekly Forecast Based on Simplified Wave Analysis for GBP/USD, AUD/USD, USD/CHF, EUR/JPY, #Ethereum, and #Litecoin – March 17th

GBP/USD Since January, an upward wave has been forming on the GBP/USD chart. The wave structure analysis shows that this wave remains incomplete. After breaking through another resistance level
Isabel Clark 09:34 2025-03-17 UTC+2

Weekly Forecast Based on Simplified Wave Analysis for EUR/USD, USD/JPY, GBP/JPY, USD/CAD, #Bitcoin, and #Ripple – March 17th

Since February 3 of this year, the chart of the euro has been forming an upward wave zigzag. The wave structure analysis indicates that a correction is forming
Isabel Clark 09:23 2025-03-17 UTC+2

Weekly Forecast BasSimplified Wave Analysis for GBP/USD, AUD/USD, USD/CHF, EUR/JPY, Ethereum, and Litecoin on March 10th

Analysis:The upward wave that started on January 13th remains incomplete, forming a new segment of the dominant global uptrend. The pair is currently trading within a narrow range between opposing
Isabel Clark 09:26 2025-03-10 UTC+2

Weekly Forecast Based on Simplified Wave Analysis for EUR/USD, USD/JPY, GBP/JPY, USD/CAD, GOLD, and Bitcoin on March 10th

Analysis:Since early February, the euro has been forming an upward zigzag wave, marking the beginning of a new bullish trend. The pair has reached a significant potential reversal zone
Isabel Clark 09:20 2025-03-10 UTC+2

GBP/USD Analysis – March 5th: The Pound Benefits from Trump

The wave structure for GBP/USD remains somewhat ambiguous but still largely understandable. Currently, the likelihood of forming a long-term downward trend remains high. Wave 5 has taken a convincing shape
Chin Zhao 19:25 2025-03-05 UTC+2

EUR/USD Analysis – March 5th

The wave pattern on the 4-hour EUR/USD chart appears clear and structured. A new downward cycle began on September 25, forming a five-wave impulse structure. Two months ago, a corrective
Chin Zhao 19:23 2025-03-05 UTC+2

GBP/USD Analysis – March 4th

The wave structure of the GBP/USD instrument remains somewhat ambiguous but still comprehensible. At present, there is a high probability of forming a long-term bearish trend segment. Wave
Chin Zhao 18:35 2025-03-04 UTC+2

Top analytics

Relevance up to 21:00 2025-03-20 UTC--4
EUR/USD Pair Overview – March 20: The Euro Holds a Strong Leadership Position
03:18 2025-03-20
Fundamental analysis
Relevance up to 07:00 UTC--4
USD/JPY: Simple Trading Tips for Beginner Traders on March 19th (U.S. Session)
19:13 2025-03-19
Forecast
Relevance up to 07:00 UTC--4
GBP/USD: Simple Trading Tips for Beginner Traders on March 19th (U.S. Session)
19:07 2025-03-19
Forecast
Relevance up to 09:00 2025-03-21 UTC--4
Euro Hits the Ceiling
00:43 2025-03-20
Fundamental analysis
Relevance up to 09:00 UTC--4
EUR/JPY: Mixed Outcomes of the Bank of Japan's March Meeting and Germany's "Debt Brake" Reform
00:43 2025-03-20
Fundamental analysis
Can't speak right now?
Ask your question in the chat.
Widget callback
Callback widget
 

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.