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
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
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

AUD/JPY. Analysis and Forecast

The AUD/JPY pair is regaining positive momentum after a modest pullback the previous day. However, spot prices remain confined within a multi-day range due to mixed fundamental signals, trading near

Irina Yanina 14:39 2025-06-20 UTC+2

USD/CHF: The Pair Struggles to Gain Momentum Amid Conflicting Forces

At present, USD/CHF shows no clear intraday direction and fluctuates within a narrow range just above the 0.8155 level, reflecting market uncertainty during the European session. The Swiss franc

Irina Yanina 14:36 2025-06-20 UTC+2

The Euro Will Retain Its Strength and Investor Interest

During her speech, IMF Managing Director Kristalina Georgieva stated that she sees the potential for the euro to play a broader role globally.Her remarks came amid growing geopolitical instability

Jakub Novak 11:25 2025-06-20 UTC+2

Euro Slightly Rises After Lagarde's Speech

The euro saw a modest recovery after European Central Bank President Christine Lagarde stated that expanding trade within the region could help offset losses resulting from global fragmentation. Her optimistic

Jakub Novak 11:10 2025-06-20 UTC+2

Donald Trump – A Mastermind of Geopolitical Uncertainty (A Potential Correction in Oil and Gold Prices)

Six months into Donald Trump's presidency, it seems he has already thoroughly exhausted the world with his "brilliant" initiatives, groundbreaking actions aimed at making America great again, and his vivid

Pati Gani 09:49 2025-06-20 UTC+2

The Market Tries to Extinguish the Fire

Markets are digesting Donald Trump's announcement that a decision on U.S. strikes against Iran will be made within two weeks. The White House could have acted at any moment

Marek Petkovich 09:01 2025-06-20 UTC+2

What to Pay Attention to on June 20? A Breakdown of Fundamental Events for Beginners

There are very few macroeconomic reports scheduled for Friday. The only report of the day will be the UK retail sales report. No economic data will be released today

Paolo Greco 07:45 2025-06-20 UTC+2

GBP/USD Overview – June 20: The Bank of England Didn't Surprise

The GBP/USD currency pair traded relatively calmly on Thursday, given the fundamental backdrop available to the market. On Wednesday evening, the Federal Reserve announced the results of its latest meeting

Paolo Greco 07:16 2025-06-20 UTC+2

EUR/USD Overview – June 20: Summing Up the Fed Meeting

The EUR/USD currency pair traded relatively calmly on Wednesday and Thursday. Recall that the results of the latest 2025 Federal Reserve meeting were announced on Wednesday evening, but we didn't

Paolo Greco 07:16 2025-06-20 UTC+2

USD/JPY. Analysis and Forecast

The Japanese yen is showing weakness against the stronger U.S. dollar, with the USD/JPY pair reaching a new monthly high. This rise in the dollar against the yen is mainly

Irina Yanina 20:12 2025-06-19 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.