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
Headquarters
Key documents
Social Responsibility
20.08.2024 04:23 PM
Analysis for GBP/USD pair on August 20, 2024
Open trading account Open demo account

This image is no longer relevant

The wave analysis for GBP/USD remains quite complex and ambiguous. For a while, the wave pattern appeared quite convincing, suggesting a downward wave sequence with targets below the 1.2300 level. However, in practice, demand for the U.S. dollar surged too significantly to realize this scenario.

Currently, the wave pattern has become completely unreadable. As a reminder, I prefer to use simple structures in my analysis because complex ones involve too many nuances and ambiguities. We now observe an upward wave that has overlapped a downward wave, which in turn overlapped a previous upward wave, which itself overlapped a prior downward wave (all within a triangle). The only assumption now is an expanding triangle with the upper point around the 1.3000 level and a balancing line around the 1.2600 level. The upper line of the triangle has been reached, and an unsuccessful attempt to break through it indicated the market's readiness to build a downward wave sequence, the first of which is already complete, and the second is nearing completion.

The GBP/USD rate increased by 45 basis points on Monday, 90 on Friday, and another 35 on Tuesday. The pound has been rising for four consecutive days from the last pullback. If we consider the very beginning, the pound has been on an upward trajectory for nine consecutive days. Last week, there was at least some news that could have reduced demand for the U.S. dollar. Reports on inflation and producer prices in the U.S., which showed a decline, could have contributed to the dollar's fall. However, no significant news has emerged this week. The market continues to reduce demand for the dollar following Jerome Powell's Friday speech and expectations of a Fed rate cut in September.

As with EUR/USD, I have one simple question: If the two reasons for the dollar's decline are Powell's speech and the rate cut in September, how long will the dollar's decline continue? The first possible answer is obvious—until Friday. However, Powell will speak, and the factor of a rate cut in September, which no one doubts now, remains. Despite the market's confidence in the policy easing on September 18 for the past three weeks, this factor still exerts significant pressure on the U.S. dollar. The wave pattern for GBP/USD might become even more complex and unreadable today. At the moment, the instrument is unable to build even a classic three-wave correction. If the pound cannot construct a simple three-wave correction, what more complex wave structures can be discussed?

This image is no longer relevant

General Conclusions

The wave pattern for GBP/USD still suggests a decline. If the upward phase of the trend began on April 22, it has already taken on a five-wave form. Therefore, at this point, a minimum of a three-wave correction should be expected. In my opinion, the instrument should be considered for sales with targets around the 1.2627 level, which corresponds to the 38.2% Fibonacci retracement, and lower. I believe that a rebound from the 1.3033 level will provide a good entry point. If the rebound is not clear and precise, it is better not to trade it.

On a larger wave scale, the wave pattern has transformed. We can now assume the development of a complex and extended upward corrective structure. Currently, it is a three-wave structure, but it could transform into a five-wave structure, which might take several more months or longer to complete.

Key Principles of My Analysis

  1. Wave structures should be simple and understandable. Complex structures are difficult to trade and often subject to changes.
  2. If there is no confidence in what is happening in the market, it is better not to enter it.
  3. Absolute certainty in the direction of movement is neither possible nor ever guaranteed. Do not forget about protective 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
All Analytics
Wave analysis
EUR/USD Analysis – March 31st The wave structure on the 4-hour EUR/USD chart is at risk of transforming into a more complex formation. On September 25 of last year, a new downward structure began forming
Chin Zhao
20:10 2025-03-31 +02:00
1180
Wave analysis
GBP/USD Analysis – March 31: The Pound Takes a Break The wave structure for GBP/USD remains somewhat ambiguous, though overall acceptable. Currently, there is still a high probability of a long-term downward trend formation. Wave 5 has taken a convincing
Chin Zhao
20:08 2025-03-31 +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
  • Chancy Deposit
    Deposit your account with $3,000 and get $1000 more!
    In April we raffle $1000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST

Recommended Stories

EUR/USD Analysis – March 31st

The wave structure on the 4-hour EUR/USD chart is at risk of transforming into a more complex formation. On September 25 of last year, a new downward structure began forming
Chin Zhao 20:10 2025-03-31 UTC+2

GBP/USD Analysis – March 31: The Pound Takes a Break

The wave structure for GBP/USD remains somewhat ambiguous, though overall acceptable. Currently, there is still a high probability of a long-term downward trend formation. Wave 5 has taken a convincing
Chin Zhao 20:08 2025-03-31 UTC+2

Weekly Forecast Based on Simplified Wave Analysis for GBP/USD, AUD/USD, USD/CHF, EUR/JPY, #Ethereum, and #Litecoin as of March 31

In the coming days, a flat phase in the movement of the British pound is expected to come to an end. In the second half of the week, a reversal
Isabel Clark 11:43 2025-03-31 UTC+2

Weekly Forecast Based on Simplified Wave Analysis for EUR/USD, USD/JPY, GBP/JPY, USD/CAD, #Bitcoin, and #Ripple – March 31

In the coming days, a completion of the downward movement in the euro exchange rate is likely, potentially reaching the lower boundary of the calculated support zone. A reversal
Isabel Clark 11:12 2025-03-31 UTC+2

EUR/USD Analysis – March 28th

The wave structure on the 4-hour chart for EUR/USD threatens to evolve into a more complex formation. A new downward structure began forming on September 25, taking the shape
Chin Zhao 19:10 2025-03-28 UTC+2

GBP/USD Analysis – March 28th

The wave structure of the GBP/USD instrument remains somewhat ambiguous, but overall digestible. At this stage, there is a strong likelihood that a long-term downward trend segment is forming. Wave
Chin Zhao 19:07 2025-03-28 UTC+2

Analysis for GBP/USD on March 27, 2025

The wave pattern for GBP/USD remains somewhat ambiguous, but overall, it is manageable. There is still a high probability of a long-term downward trend developing. Wave 5 has taken
Chin Zhao 18:07 2025-03-27 UTC+2

Analysis for GBP/USD on March 26, 2025

The wave pattern for GBP/USD remains somewhat ambiguous but overall workable. There is still a high probability of a long-term bearish trend forming. Wave 5 has taken a clear shape
Chin Zhao 17:37 2025-03-26 UTC+2

Analysis for GBP/USD on March 25, 2025

The wave pattern for GBP/USD remains somewhat ambiguous but still manageable. Currently, there is a high probability of a long-term downward trend forming. Wave 5 has taken a convincing shape
Chin Zhao 18:36 2025-03-25 UTC+2

Weekly Forecast Based on Simplified Wave Analysis for GBP/USD, AUD/USD, USD/CHF, EUR/JPY, #Ethereum, #Litecoin – March 24th

In the coming days, GBP is expected to move sideways with a flat bias. Pressure on the lower boundary of the support zone is possible, followed by stabilization
Isabel Clark 11:21 2025-03-24 UTC+2

Top analytics

Relevance up to 05:00 UTC--4
EUR/USD. Analysis and Forecast
12:35 2025-03-31
Fundamental analysis
Relevance up to 23:00 UTC--4
GBP/USD Forecast for March 31, 2025
05:13 2025-03-31
Technical analysis
Relevance up to 02:00 UTC--4
USD/JPY: Simple Trading Tips for Beginner Traders on March 31. Review of Yesterday's Forex Trades
09:35 2025-03-31
Forecast
Relevance up to 05:00 2025-04-04 UTC--4
Weekly Forecast Based on Simplified Wave Analysis for EUR/USD, USD/JPY, GBP/JPY, USD/CAD, #Bitcoin, and #Ripple – March 31
11:12 2025-03-31
Wave analysis
Relevance up to 23:00 UTC--4
EUR/USD Forecast for March 31, 2025
05:20 2025-03-31
Technical 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.