empty
28.04.2025 01:05 AM
British Pound. Weekly Preview

This image is no longer relevant

The British pound is doing even better than the euro. The market keeps finding additional reasons to increase demand for the pound, even when the euro remains stagnant. Therefore, even hoping for a corrective wave is extremely difficult. The wave pattern is rather formal since all movements now depend solely on Donald Trump. Currently, we should expect the formation of the third wave of the new upward trend segment, but how will the instrument behave if Trump starts canceling tariffs?

In the new week, there will be few economic reports from the UK, while all the main events will again be in the US. No reports are scheduled for Britain, whereas the US will release data on the labor market and unemployment. However, I would like to remind you that the latest unemployment and payroll reports (among the most important reports) did not provoke any significant market reaction. Therefore, I wouldn't be confident we will see market movements based on economic data this coming Friday.

I believe everything on the market will continue to revolve around Trump. Some of my readers are probably already tired of hearing about the American president every day, but unfortunately, this is the only factor that matters right now. There is little practical use in discussing the state of the American or British economy or monetary policy if they do not influence market sentiment. Last week, demand for the US dollar did not increase, and therefore, I do not expect a "miraculous resurrection" of the American currency in the new week unless some corresponding information comes from Trump.

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 a new upward trend segment. Donald Trump's actions reversed the previous downward trend. Therefore, the wave structure will entirely depend on the position and actions of the US president for the foreseeable future. It is essential always to keep this in mind. Based solely on the wave structure, I expected constructing a three-wave correction within wave 2. However, wave 2 has already been completed, taking a single-wave form. The construction of wave 3 of the upward segment has begun, and its targets may extend to the 1.2500 area ("the 25th figure"). Achieving these targets will depend solely on Trump, and the internal structure of this wave is already becoming rather "awkward."

This image is no longer relevant

Wave structure for GBP/USD:

The wave structure of the GBP/USD instrument has transformed. Now, we are dealing with an upward, impulsive trend segment. Unfortunately, under Donald Trump, markets may experience many shocks and reversals that do not conform to any wave structure or technical analysis. The supposed wave 2 has been completed, as quotes have exceeded the peak of wave 1. Therefore, the construction of an upward wave 3 should be expected, with immediate targets at 1.3345 and 1.3541. Ideally, it would be good to see a corrective wave 2 within wave 3, but the dollar would need to rise for that to happen. And for that, someone would have to start buying it.

Main principles of my analysis:

  1. Wave structures should be simple and clear. Complex structures are difficult to trade and often lead to changes.
  2. If there is no confidence in the market situation, it is better not to enter it.
  3. Absolute certainty in the direction of movement does not exist and never will. Always remember to use 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
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

USD/JPY. Analysis and Forecast

During the European session on Thursday, the Japanese yen maintained stability, allowing the USD/JPY pair to hold above the key 143.00 level amid a moderate rise in the U.S. dollar

Irina Yanina 12:04 2025-06-05 UTC+2

AUD/JPY. Analysis and Forecast

Today the AUD/JPY pair is attracting new buyers. Recent Chinese data, including the private Caixin survey, showed a moderate acceleration in growth in China's services sector

Irina Yanina 11:36 2025-06-05 UTC+2

USD/CAD. Analysis and Forecast

The USD/CAD pair continues to decline. Fundamental factors support bearish sentiment, indicating that the path of least resistance for spot prices remains downward. Reports of a trade agreement between

Irina Yanina 11:33 2025-06-05 UTC+2

The Market Finds Good in the Bad

Markets have risen for the third consecutive day, interpreting the current situation as widespread trading uncertainty — far from a market crash. This allows for a calmer and more rational

Marek Petkovich 09:20 2025-06-05 UTC+2

What to Pay Attention to on June 5? A Breakdown of Fundamental Events for Beginners

There are very few macroeconomic reports scheduled for Thursday. Only two secondary reports from the UK and the US are all traders will get today. The construction sector activity report

Paolo Greco 06:39 2025-06-05 UTC+2

GBP/USD Overview – June 5: Britain Is America's Best Friend, but Still Has to Pay

The GBP/USD currency pair traded rather calmly on Wednesday, as there were few important events and reports during the day. As we expected, the business activity indices (excluding ISM)

Paolo Greco 03:52 2025-06-05 UTC+2

EUR/USD Overview – June 5: Trump Will Continue Pressuring the EU

The EUR/USD currency pair traded very calmly on Wednesday. As we mentioned yesterday, there was no reason to expect the business activity indices to influence trading — especially the European

Paolo Greco 03:52 2025-06-05 UTC+2

Trump Once Again Fails to Persuade Powell

Donald Trump and Jerome Powell held a meeting at the White House last week. This news went largely unnoticed due to the scant details provided. Only general information about

Chin Zhao 00:38 2025-06-05 UTC+2

EUR/USD. June ECB Meeting: Preview

On Thursday, the European Central Bank will announce the results of its next meeting. Although the formal outcomes of the June meeting are virtually predetermined, the future prospects for further

Irina Manzenko 00:38 2025-06-05 UTC+2

The Dollar Returns to the Battlefield

When there is no unity among allies, things don't go smoothly. Following mutual accusations between the U.S. and China, Donald Trump commented that Xi Jinping is a very tough

Marek Petkovich 00:38 2025-06-05 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.