empty
 
 

Forex Analysis & Reviews: Analysis of GBP/USD. September 24. Oddly enough, the British pound remains within the current wave structure, despite the collapse.
time 24.09.2022 03:28 PM
time Relevance up to, 26.09.2022 11:11 AM

This image is no longer relevant

For the pound/dollar instrument, the wave marking looks quite complicated at the moment but still does not require any clarification. The upward wave, built between May 13 and May 27, does not fit into the overall wave picture, but it can still be considered corrective as part of the downward trend section. Thus, it can now be concluded that the downward section of the trend continues its construction. At the moment, we have completed waves a, b, c, and d, so we can assume that the instrument is inside wave e. Within this wave, waves of a lower scale are being viewed, and I can assume that the last increase in quotes is wave 4 in e. If this is indeed the case, then the decline in quotes continues within the framework of wave 5 in e, which can be completed at any time – it has already taken on too extended a form. But the wave marking for the euro currency has already suffered certain changes, which means it can also suffer for the pound sterling. Both the downward trend sections may take on an even more extended form. Therefore, both instruments continue to move almost without corrective structures. As before, you must try isolating impulse structures and working on them.

The market crashed the pound sterling on Friday.

The exchange rate of the pound/dollar instrument decreased by 416 basis points on September 23. No, this is not a typo, and yesterday there were no speeches by Andrew Bailey, Jerome Powell, Joe Biden, and Liz Truss, and there were no meetings of central banks or important statistics. It's just that the market decided on Friday to sell the British dollar at a higher rate than on Wednesday and Thursday, when the Fed and the Bank of England meetings became known. I still believe that relying only on the news background and the British pound could have avoided such a fall. Nevertheless, the Bank of England continues to tighten monetary policy, showing that it struggles with high inflation. Even if the market considers the current rate of interest rate increase insufficient, this is still not a reason for such a strong decline in demand for the pound. And, of course, weak business activity indices in the UK could not be the reason for the collapse by 400 points. Business activity in the manufacturing sector increased slightly in September but remained below the 50.0 mark. But let me remind you that at the same time, two of the three business activity indices in the United States also increased but remained below the 50.0 mark. If the market bought the dollar because the indices still rose, why didn't it buy the pound here, since one of the indices rose, and the other two declined slightly?

It seems that the British collapsed on Friday due to all factors. All this led to a strong drop in demand for the instrument. Wave e is already taking on too long a look, but who will forbid the market to continue selling the pound?

This image is no longer relevant

General conclusions.

The wave pattern of the pound/dollar instrument suggests a continued decline in demand for the pound. I advise selling the tool now, as before. It is necessary to sell more cautiously since, despite a strong decline, the construction of a downward trend section may be completed in the near future. And the goals of this section are scattered up to the 1.0140 mark, corresponding to 261.8% Fibonacci.

The picture is very similar to the Euro/Dollar instrument at the higher wave scale. The same ascending wave does not fit the current wave pattern, the same five waves down after it. Thus, one thing is unambiguous – the downward section of the trend continues its construction and can turn out to be almost any length.

Chin Zhao,
Chuyên gia phân tích của InstaForex
© 2007-2022
Benefit from analysts’ recommendations right now
Top up trading account
Open trading account

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.

  • Giao dịch khôn ngoan, thành công
    Nạp tiền vào tài khoản của bạn với ít nhất $ 500, đăng ký cuộc thi và có cơ hội giành được các thiết bị di động.
    THAM GIA CUỘC THI
  • Ferrari từ InstaForex
    Nạp tiền vào tài khoản của bạn với ít nhất 1.000
    tham gia cuộc thi và giành chiến thắng Ferrari
    F8 Tributo
    THAM GIA CUỘC THI
  • Tiền gửi lần truy cập
    Gửi vào tài khoản của bạn 3.000 đô la và giành được 1.000 đô la
    THAM GIA CUỘC THI
  • 100% tiền thưởng
    Cơ hội duy nhất của bạn để nhận 100% tiền thưởng khi gửi tiền
    NHẬN THƯỞNG
  • 55% Tiền thưởng
    Đăng ký tiền thưởng 55% cho mỗi lần gửi tiền của bạn
    NHẬN THƯỞNG
  • 30% tiền thưởng
    Nhận 30% tiền thưởng mỗi khi bạn nạp tiền vào tài khoản của mình
    NHẬN THƯỞNG

Recommended Stories

Elliott wave analysis of Litecoin for December 5, 2022

Litecoin has broken above minor resistance at 80.61 which has opened up the way to a rally towards 96.90 as the next upside target. Longer term, we are looking

Torben Melsted 06:54 2022-12-05 UTC+2

Elliott wave analysis of EUR/USD for December 5, 2022

EUR/USD continue to follow the expected path higher. After a break above minor resistance at 1.0481, the upside has been cleared for a rally towards 1.0785 and 1.0926

Torben Melsted 06:23 2022-12-05 UTC+2

GBP/USD. Analysis for December 3. Now we are focusing on future meetings of central banks.

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

Chin Zhao 13:46 2022-12-03 UTC+2

EUR/USD. Analysis for December 3, 2022

The wave marking on the euro/dollar instrument's 4-hour chart still appears quite accurate. However, the entire upward portion of the trend is starting to get more complicated. It has already

Chin Zhao 13:46 2022-12-03 UTC+2

GBP/USD. Analysis for December 1. Powell has "solved" the issue of low business activity in the UK.

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

Chin Zhao 16:25 2022-12-01 UTC+2

EUR/USD. Analysis for December 1. The dollar has declined and is threatening to break the wave pattern again.

Although it still looks very convincing, the wave marking on the 4-hour chart for the euro/dollar instrument needs to be adjusted. The upward portion of the trend has corrected itself

Chin Zhao 15:30 2022-12-01 UTC+2

GBP/USD. Analysis for November 30. The British pound is waiting for Powell's speech

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 segment that has taken the form

Chin Zhao 16:01 2022-11-30 UTC+2

EUR/USD. Analysis for November 30. Inflation in the European Union has slowed to 10%.

Although it still looks very convincing, the wave marking on the 4-hour chart for the euro/dollar instrument needs to be adjusted. The upward portion of the trend has corrected itself

Chin Zhao 15:36 2022-11-30 UTC+2

Elliott wave analysis of Litecoin for November 30, 2022

Litecoin has broken nicely above minor resistance at 77.49 and more importantly above resistance at 79.50 which confirms that the corrective decline has been completed and a new impulsive rally

Torben Melsted 06:21 2022-11-30 UTC+2

Elliott wave analysis of The Dow Jones Index for November 30, 2022

Over the last one and a half months, we have seen the DJI correction in a possible B or X wave to a high of 34,386 or just above

Torben Melsted 06:14 2022-11-30 UTC+2
Không thể nói chuyện ngay bây giờ?
Đặt câu hỏi của bạn trong phần trò chuyện.