empty
InstaForex - Official partner of Dragon Racing
InstaForex - Official partner of Dragon Racing
This section is designed for those who are just starting their trading journey. InstaForex educational and analytical materials will meet your training needs. Our experts' recommendations will make your first steps to trading success simple and clear.
Start as Beginner
How to start trading
Useful information
Training and recordings
InstaForex innovative services are an essential element of productive investment. We strive to provide our clients with advanced technical capabilities and make their trading routine comfortable as we are recognized as the best broker in this regard.
Become Investor
PAMM System
ForexCopy System
Passive investments
Partnership with InstaForex is beneficial and top-tier. Join our affiliate programs and enjoy bonuses, partner rewards, and the possibility to travel with the team of the world-renowned brand.
Become Partner
Main Page
Partner Area
Advantages for Affiliates
Registration
This section contains the most lucrative offers from InstaForex. Receive bonuses when topping up an account, compete with other traders, and get real prizes even when trading in a demo account.
All Promo Campaigns
Bonuses
Contests
Events
Holidays with InstaForex are not only pleasant but also useful. We offer a one-stop portal, numerous forums, and corporate blogs, where traders can exchange experiences and become successfully integrated into the Forex community.
Full details
Forums
We are in social networks
Forex humour
Forex Portal
InstaForex is an international brand created in 2007. The company provides services for online FX trading and is recognized as one of the world's leading brokers. We have won the trust of more than 7,000,000 retail traders, who have already appreciated our reliability and focus on innovations.
Learn More
History
Why Choose Us
InstaSport
Regulation
Company News
Awards
InstaForex Stars
InstaForex Offline
Headquarters
Key documents
Social Responsibility
12.02.2024 12:03 AM
What to expect for the British pound next week?
Open trading account Open demo account

This image is no longer relevant

Traditionally, there will be fewer events in the UK, but at least we can look forward to important ones. The British pound continues to stand firm against the US dollar, as market expectations regarding the monetary policy of the Bank of England remain the same. Market participants do not expect a rate cut in the coming months, unlike the scenarios for the European Central Bank and the Federal Reserve. While the euro and the dollar have their own dynamics, the British pound, despite its wave pattern, continues to hold its ground. More precisely, it continues to stay in one place.

In such a situation, I would say that news almost has no practical significance. How many important events have occurred in the last two months while the GBP/USD instrument remained in a sideways trend? Clearly, there have been many, but each time, the market refused to break out of the range. So what has changed now? GBP/USD has finally breached the important level of 1.2627, but the British pound, in the four days following the breakthrough, showed no interest in declining. What are the chances that even after significant events, the market will return to selling? In my opinion, they are not high.

This image is no longer relevant

BoE Governor Andrew Bailey will start the week by delivering a speech. I don't think Bailey will change his rhetoric with every speech, but still, if we can't expect important information from the head of the BoE, then from whom? On Tuesday, reports on unemployment and wages will be released, which may surprise market participants but these reports are unlikely to change the current sentiment to a bearish one.

However, on Wednesday, an important inflation report could significantly impact the pound's current resilience. Inflation for January may just increase to 4.1%-4.2%. This means that the BoE will have even fewer reasons to talk about rate cuts or any other measures to ease financial conditions right now. Core inflation will likely remain around 5.1%. In other words, it may continue to rise without slowing down.

On Thursday, reports on GDP and industrial production will be released, followed by a retail sales report on Friday. In the current situation, I don't think these data are capable of exerting strong pressure on the pound. Based on everything I mentioned, I believe that you should focus on Bailey's speech and the inflation report.

Based on the analysis, I conclude that a bearish wave pattern is being formed. Wave 2 or b appears to be complete, so in the near future, I expect an impulsive descending wave 3 or c to form with a significant decline in the instrument. The failed attempt to break through the 1.1125 level, which corresponds to the 23.6% Fibonacci, suggests that the market is prepared to sell a month ago. I am currently considering selling. I will only consider short positions with targets around the level of 1.0462, which corresponds to 127.2% Fibonacci.

This image is no longer relevant

The wave pattern for the GBP/USD pair suggests a decline. At this time, I am considering selling the instrument with targets below the 1.2039 mark because wave 2 or b will eventually end, just like the sideways trend. I would wait for a successful attempt to break through the 1.2627 level as this will serve as a sell signal. In the near future, there could be another signal in the form of an unsuccessful attempt to break this level. If it appears, the pair could firmly fall at least to the level of 1.2468, which would already be a significant achievement for the dollar, as the demand for it remains very low.

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
All Analytics
Fundamental analysis
The Euro Ends Its Consolidation and Prepares to Rise Again Inflation in the eurozone remained at 2.2% year-on-year in April, slightly above the expected decline to 2.1%. Meanwhile, core inflation rose from 2.4% to 2.7%, significantly exceeding the forecast
Kuvat Raharjo
19:08 2025-05-06 +02:00
1225
Wave analysis
GBP/USD Analysis – May 6th: The Pound Ignores the BoE The wave structure for the GBP/USD pair has also transitioned into a bullish, impulsive formation—"thanks" to Donald Trump. The wave picture is nearly identical to that of EUR/USD. Prior
Chin Zhao
19:06 2025-05-06 +02:00
1150
Breaking Forecast Trading Plan Cryptocurrencies USD/RUB Russian Economy Video Analysis
Trading Instruments
EURUSD GBPUSD USDCHF USDCAD USDJPY AUDUSD EURGBP EURJPY NZDUSD EURNZD Silver Gold #CL #USDX COVID-19 Bitcoin
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

USD/JPY. Analysis and Forecast

The Japanese yen is attracting buyers following a recent decline, owing to its status as a safe-haven asset in times of uncertainty. The anticipated recovery of the yen is supported
Irina Yanina 18:47 2025-05-06 UTC+2

EUR/USD. Analysis and Forecast

The EUR/USD pair is struggling to establish a clear short-term direction, trading within a multi-day range as markets await decisive news from the upcoming FOMC meeting regarding the interest rate
Irina Yanina 11:05 2025-05-06 UTC+2

USD/CAD. Analysis and Forecast

Today, the USD/CAD pair remains positive within a familiar range, without showing strong buying momentum. The strengthening of the U.S. dollar following a two-day decline is attributed to the positive
Irina Yanina 11:03 2025-05-06 UTC+2

The Market Took a Step Back

The longest winning streak of the S&P 500 in two decades has come to an end. But who's responsible? The Federal Reserve, which plans to keep rates unchanged
Marek Petkovich 10:16 2025-05-06 UTC+2

Markets Anxiously Await the Fed's Monetary Policy Meeting (Potential for Renewed Growth in Bitcoin and #NDX)

Markets remain tense. The U.S. Dollar Index and the cryptocurrency market are stagnating, caught between opposing forces. Investors are tensely awaiting the outcome of the Federal Reserve's monetary policy meeting
Pati Gani 10:02 2025-05-06 UTC+2

GBP/USD Overview – May 6: Trump Goes After the Film Industry

The GBP/USD currency pair traded upward during the first half of Monday and downward during the second half. While the U.S. dollar didn't lose much this time, its brief attempt
Paolo Greco 07:04 2025-05-06 UTC+2

EUR/USD Overview – May 6: The Protest Against Donald Trump Continues

The EUR/USD currency pair began a new upward cycle on Monday. At this point, no one is likely surprised by another drop in the U.S. dollar. The market started selling
Paolo Greco 07:04 2025-05-06 UTC+2

What to Pay Attention to on May 6? A Breakdown of Fundamental Events for Beginners

There are very few macroeconomic events scheduled for Tuesday. In the Eurozone and Germany, the second estimate of April's services PMI will be published, but these are unlikely to attract
Paolo Greco 05:49 2025-05-06 UTC+2

Fed Rate Cut Probability Is Near Zero

This week marks the third Federal Reserve meeting of the year. At the first two meetings, monetary policy parameters remained unchanged, and there is virtually no chance of a rate
Chin Zhao 00:50 2025-05-06 UTC+2

The Dollar Sell-Off Shows No Signs of Slowing Down

The latest CFTC report reveals that the dollar sell-off continues unabated. Weekly changes against major currencies amounted to -$3.1 billion, bringing the total accumulated short position to -$17.1 billion
Kuvat Raharjo 00:50 2025-05-06 UTC+2

Top analytics

Relevance up to 02:00 2025-05-07 UTC--4
USD/JPY: Simple Trading Tips for Beginner Traders on May 6. Review of Yesterday's Forex Trades
08:48 2025-05-06
Forecast
Relevance up to 20:00 2025-05-06 UTC--4
Trading Recommendations and Analysis for EUR/USD on May 6: Surprising and Unbelievable
03:32 2025-05-06
Trading plan
Relevance up to 20:00 2025-05-06 UTC--4
EUR/USD Overview – May 6: The Protest Against Donald Trump Continues
07:04 2025-05-06
Fundamental analysis
Relevance up to 23:00 2025-05-06 UTC--4
How to Trade the EUR/USD Pair on May 6? Simple Tips and Trade Analysis for Beginners
05:40 2025-05-06
Trading plan
Relevance up to 09:00 2025-05-11 UTC--4
The Euro Ends Its Consolidation and Prepares to Rise Again
19:08 2025-05-06
Fundamental analysis
Can't speak right now?
Ask your question in the chat.
Widget callback
Callback widget
 

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.