GBP/USD Forecast: Pound Sterling rebounds but remains fragile
GBP/USD turned south in the American session on Wednesday and lost 0.5%, posting ts largest one-day loss since late April. Although the pair managed to recover above 1.2700 in the European morning on Thursday, it might have a difficult time gathering bullish momentum.
The negative shift seen in market mood helped the US Dollar (USD) find demand as a safe-haven and caused GBP/USD to push lower. Reflecting the risk-averse atmosphere, Wall Street's main indexes lost between 0.7% and 1.05%. Read more...
GBP/USD Elliott Wave technical analysis [Video]
The GBPUSD Elliott Wave Analysis on the daily chart evaluates the price action of the British Pound against the U.S. Dollar using Elliott Wave Theory. This technical analysis is focused on the trend function, indicating that the market is following a specific directional movement. The mode of this trend is classified as impulsive, suggesting strong directional momentum rather than a corrective or sideways movement.
The primary wave structure being examined is orange wave 4, which is part of a larger sequence identified as navy blue wave 1. This classification implies that the market is undergoing an impulsive phase within the initial stage of a larger upward movement. The position of the market within navy blue wave 1 indicates that the current orange wave 4 is a corrective phase within this larger impulsive trend. Read more...
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD stays defensive near 1.0500 amid French political jitters
EUR/USD is battling 1.0500 in the European session on Wednesday. The pair trades with caution amid renewed US Dollar buying and French political uncertainty as the government faces a no-confidence vote in a busy day ahead. US data, Lagarde and Powell eyed.
GBP/USD bounces back toward 1.2700 ahead of US data, Powell
GBP/USD picks up fresh bids and reverts toward 1.2700 in European trading on Wednesday. The pair reverses dovish BoE Governor Bailey's remarks-led drop as traders reposition ahead of US ADP Jobs data, ISM Services PMI data and Fed Chair Powell's speech.
Gold price treads water near $2,640, Fed Chair Powell's speech eyed
Gold price attracts some sellers following an intraday uptick to the $2,650 supply zone in the early European session on Wednesday. The precious metal, however, remains confined in a familiar range held over the past week or so as traders seem reluctant to place aggressive directional bets ahead of Fed Chair Jerome Powell's speech.
ADP report expected to show US private sector job growth cooled in November
The ADP Employment Change report is seen showing a deceleration of job creation in the US private sector in November. The ADP report could anticipate the more relevant Nonfarm Payrolls report on Friday.
The fall of Barnier’s government would be bad news for the French economy
This French political stand-off is just one more negative for the euro. With the eurozone economy facing the threat of tariffs in 2025 and the region lacking any prospect of cohesive fiscal support, the potential fall of the French government merely adds to views that the ECB will have to do the heavy lifting in 2025.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.