empty
 
 

Forex Analysis & Reviews: GBP/USD. Analysis for December 8. The British pound is unsure of what it is anticipating.
time 08.12.2022 06:00 PM
time Relevance up to, 09.12.2022 05:50 PM

This image is no longer relevant

The wave marking for the pound/dollar instrument currently appears quite confusing, but it still needs to be clarified. We have a five-wave upward trend section, which has taken the form a-b-c-d-e and may already be complete. As a result, the instrument's price increase may last for a while. Both instruments are still forming an upward trend segment that will eventually lead to a mutual decline. Recently, the British pound's news background has been so varied that it is challenging to sum it up in one word. The British pound had more than enough reasons to rise and fall. As you can see, it primarily chose the first option and still does so today. The internal wave structure of wave e became more complicated due to the rise in quotes the week before last, and it became even more complicated the following week. However, as of this week's first day, the British pound still feels great and has no desire to create a corrective wave. I am currently waiting for the decline of both instruments. Still, these trend sections may take an even longer form because the wave marking on both instruments allows the ascending section to be built up to completion at any time.

The UK currency is still in high demand.

The pound/dollar exchange rate on Thursday increased by ten basis points. Additionally, while this is an improvement over yesterday's instrument, it has no value for the current wave markup. In other words, a change of 50 or 100 points has no bearing on the instrument because it is just market noise. I still need to figure out whether the upward trend section's construction is complete once the quotes have moved past the 150-point peaks. We can anticipate the continuation of the upward trend in quotes and the start of a downward trend in the current environment. This week, there is no background news in the UK, and in the USA, the market is already aware of all the most intriguing reports. The consumer sentiment index and the report on unemployment benefit applications cannot alter the market's stance toward trading. As a result, I don't anticipate any significant changes this week either. The important thing is that these adjustments can be made before the Bank of England and Fed meetings.

Additionally, I don't link upcoming price changes to the Fed and Bank of England meetings. The market has already experienced the rate changes from December several times. As a result, although the amplitude may increase significantly on the days of the announcement of the outcomes of the meetings of both central banks, it is unlikely that this will mark the beginning of a new downward trend segment. Alternately, the current ascending one will get trickier. The market must now determine whether any factors drive demand for the euro or pound to rise. I can't personally see them. We will still witness the development of at least a three-wave correction section of the trend if the market accepts this conclusion.

This image is no longer relevant

Conclusions in general

The construction of a new downward trend segment is predicated on the wave pattern of the pound/dollar instrument. Since the wave marking permits the construction of a downward trend section, I cannot advise purchasing the instrument. With targets around the 1.1707 mark, or 161.8% Fibonacci, sales are now more accurate. The wave e, however, can evolve into an even longer shape.

The euro/dollar instrument and the picture look very similar at the larger wave scale, which is good because both instruments should move similarly. The upward correction portion of the trend is currently almost finished. If this is the case, a new downward trend will soon develop.

Chin Zhao,
Analytical expert of InstaForex
© 2007-2023
GBPUSD
Great Britain Pound vs US Dollar
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Start trade
Start trade

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.

  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $1000 more!
    In February 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
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS

Recommended Stories

GBP/USD. Analysis for February 7. Neil Kashkari: The target rate is 5.4%.

The wave pattern for the pound/dollar pair now appears very confusing but does not call for any clarifications. The wave patterns for the euro and the pound differ somewhat

Chin Zhao 16:03 2023-02-07 UTC+2

EUR/USD. Analysis for February 7, 2023

The 4-hour chart for the euro/dollar pair still shows the same wave structure, which is excellent because it allows us to predict how the situation will play out. Although

Chin Zhao 15:45 2023-02-07 UTC+2

EURUSD wave analysis for February 7th, 2023

EURUSD is clearly in a short-term bearish trend as price is making lower lows and lower highs. Price has formed a downward sloping channel and is currently on its final

Alexandros Yfantis 15:25 2023-02-07 UTC+2

Elliott wave analysis of EUR/USD for February 7, 2023

The expanded flat correction in wave 4/ that has unfolded since the 1.0925 peak is now close to completion. We could still see EUR/USD drop to 1.0650, but the potential

Torben Melsted 06:52 2023-02-07 UTC+2

GBP/USD. Analysis for February 6, 2023

The wave pattern for the pound/dollar pair now appears very confusing but does not call for any clarifications. The wave patterns for the euro and the pound differ somewhat

Chin Zhao 18:04 2023-02-06 UTC+2

EUR/USD. Analysis for February 6, 2023

The wave pattern for the euro/dollar pair on the 4-hour chart hasn't moved at all recently, which is excellent because it means we know how the situation might change. Although

Chin Zhao 17:49 2023-02-06 UTC+2

Elliott wave analysis of EUR/USD for February 6, 2023

With the break below minor support at 1.0835, it was clear that wave 4 still was in progress in form of an expanded flat correction. We will be looking

Torben Melsted 06:07 2023-02-06 UTC+2

Elliott wave analysis of Tesla for February 3, 2023

Tesla has recovered nicely in wave 4/ as predicted and could move a bit closer to 199.50 before turning lower again in wave 5/ of 3 closer to our long-term

Torben Melsted 07:13 2023-02-03 UTC+2

Elliott wave analysis of EUR/USD for February 3, 2023

EUR/USD broke strongly above the former top at 1.0933 after the Fed's decision to hike only 25 bps and a follow-up with a dovish press conference. However, the spike

Torben Melsted 07:05 2023-02-03 UTC+2

GBP/USD wave analysis on February 2, 2023. GBP moving in line with wave structure

The wave layout of GBP/USD looks rather complex and does not require any adjustments. However, its structure starts to differ when compared to the layout of the euro/dollar pair

Chin Zhao 07:48 2023-02-02 UTC+2
Can't speak right now?
Ask your question in the chat.