empty
 
 
10.03.2024 11:51 PM
What to expect from the British pound next week?

This image is no longer relevant

The pound took a very important step. I am omitting the unreasonable basis behind the pound's growth, but the updated wave pattern suggests that the pound may start a new round of upward movement. I mentioned earlier that any wave formation can take a complex structure regardless of the circumstances. Usually, the news background helps us understand what to expect from the instrument according to the wave pattern. But we're dealing with somewhat different times here. I believe that over the past few weeks, demand for the pound has grown completely out of line with the news background. Now I expect the construction of wave C in 2 or b. Based on this, the news background is not an important factor for market participants right now. Nevertheless, let's look at the events calendar.

A lot of important economic reports are scheduled for release in the UK. Unemployment rate, wages, unemployment benefit claims, GDP for January, industrial production. Among these reports, it is difficult to highlight one or two that could have a negative impact on market sentiment. We already know and understand that even a recession in the British economy does not exert pressure on the pound. Therefore, GDP and industrial production reports will not have a strong negative impact on the pound, even if their values are weaker than market expectations.

This image is no longer relevant

The unemployment rate in the UK is stable, and we don't expect it to show a sharp rise. The same applies to unemployment benefit claims. In my opinion, the most important report will be on wages. If the growth rates remain unchanged in January (5.7-5.8% YoY), the market may perceive this as a signal to raise the demand for the pound. Why? The stronger the wage growth, the more difficult it is for inflation to decrease. And UK inflation is still quite far from the 2% target. A growth of 5.7-5.8% in wages is significant. British consumers have more money at their disposal, forcing producers to raise prices as demand remains high.

There are certainly more US reports next week, particularly on inflation. So let's not bury the dollar in advance, but it doesn't have a good chance of rising.

Wave analysis for EUR/USD:

Based on the conducted analysis of EUR/USD, I conclude that a bearish wave set is being formed. Wave 2 or b is complete, so in the near future, I expect an impulsive downward wave 3 or c to form with a significant decline in the instrument. An internal corrective wave is currently being formed, which could have already ended. I am considering short positions with targets around the level of 1.0462, which corresponds to 127.2% according to Fibonacci, and I am waiting for the end of the corrective wave.

This image is no longer relevant

Wave analysis for GBP/USD:

The wave pattern of the GBP/USD instrument suggests a decline. I am considering selling the instrument with targets below the 1.2039 level, because I believe that wave 3 or c will start sooner or later. However, unless wave 2 or b ends, the instrument can still rise to the level of 1.3140, which corresponds to 100.0% according to Fibonacci. A successful attempt to break through the level of 1.2877, which is equivalent to 76.4% according to Fibonacci, will indicate that the market is ready to increase the demand for the instrument. In this case, you may consider long positions.

Key principles of my analysis:

Wave structures should be simple and understandable. Complex structures are difficult to work with, and they often bring changes.

If you are not confident about the market's movement, it would be better not to enter it.

We cannot guarantee the direction of movement. Don't forget about Stop Loss orders.

Wave analysis can be combined with other types of analysis and trading strategies.

Jana pendapatan melalui perubahan kadar mata wang kripto dengan InstaForex.
Muat turun MetaTrader 4 dan buka dagangan pertama anda.
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    SERTAI PERADUAN
  • Chancy Deposit
    Deposit akaun anda sebanyak $3,000 dan dapatkan $5000 lebih lagi!
    Dalam November kami membuat cabutan bertuah $5000 dalam Kempen Chancy Deposit!
    Dapatkan peluang untuk menang dengan membuat deposit $ 3000 ke dalam akaun dagangan. Setelah memenuhi syarat ini, anda menjadi peserta kempen.
    SERTAI PERADUAN
  • Trade Wise, Win Device
    Daftar untuk peraduan dan tambah dana akaun anda dengan sekurang-kurangnya AS$ 500 untuk layak memenangi peranti mudah alih.
    SERTAI PERADUAN
  • Bonus 100%
    Peluang istimewa anda untuk menerima bonus 100% pada deposit anda
    DAPATKAN BONUS
  • Bonus 55%
    Dapatkan bonus 55% pada setiap deposit anda
    DAPATKAN BONUS
  • Bonus 30%
    Dapatkan bonus 30% setiap kali anda membuat penambahan dana akaun anda
    DAPATKAN BONUS

Artikel yang dicadangkan

Tidak boleh bertanya sekarang?
Tanya soalan anda di Ruangan bersembang.
Panggilan semula Widget