Pound Sterling drops as investors await BoE’s policy decision
The Pound Sterling (GBP) underperforms against its major peers, except safe-haven assets, on Tuesday as investors await the Bank of England’s (BoE) monetary policy decision, which will be announced on Thursday.
According to money market expectations, traders have priced in an 81 basis points (bps) interest rate reduction this year, suggesting there will be more than three 25 bps interest rate cuts by December. The first is seen coming this week, which will push borrowing rates lower to 4.50%. Read more…
GBP/USD Forecast: Pound Sterling trades near key resistance
After falling to a two-week-low of 1.2250 early Monday, GBP/USD reversed its direction and closed the day marginally higher. Early Tuesday, the pair trades in a narrow channel, slightly below 1.2450.
The improving risk mood in the second half of the day on Monday forced the US Dollar (USD) to erase its daily gains, helping GBP/USD stage a decisive rebound. Read more…
GBP/USD Elliott Wave technical analysis [Video]
The daily chart analysis of the British Pound against the US Dollar (GBPUSD) applies Elliott Wave Theory, indicating an ongoing bullish trend with an impulsive structure. The primary focus is on Orange Wave 3, which has begun following the completion of Orange Wave 2 within Navy Blue Wave 1. This suggests a continuation of upward market momentum.
Currently, the price is positioned in Navy Blue Wave 1, representing the early phase of a potential extended bullish sequence. The completion of Orange Wave 2 indicates a transition toward a stronger upward push, with Orange Wave 3 actively developing. This wave is typically the most powerful in an impulsive structure, reinforcing the bullish sentiment. Read more…
