empty
InstaForex Loprais Team - Official participant of the Dakar rally
InstaForex Loprais Team - Official participant of the Dakar rally
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
Key documents
Social Responsibility
21.08.2024 06:19 PM
Analysis for GBP/USD pair on August 21, 2024
Open trading account Open demo account

This image is no longer relevant

Analysis for GBP/USD pair on August 21, 2024

The GBP/USD exchange rate increased by another 10 basis points on Wednesday.

The wave pattern for GBP/USD continues to be quite complex and ambiguous. For a while, the wave pattern seemed fairly convincing, suggesting the formation of a downward wave set with targets located below the 1.23 level. However, in practice, demand for the U.S. dollar increased too much for this scenario to play out.

At this point, the wave pattern has become somewhat unreadable. I would like to remind you that in my analysis, I strive to use simple structures, as complex ones contain too many nuances and ambiguous aspects. We currently observe an upward wave overlapping a downward wave, which in turn overlaps the previous upward wave, and so on (all these waves are within a triangle). The only assumption that can be made is that of an expanding triangle with the upper point around the 1.30 level and the equilibrium line around 1.26. The upper line of the triangle has been reached, and a failed attempt to break through it indicated the market's readiness to form a downward wave set, the first of which has already completed, and the second is nearing completion.

Commerzbank Offers an Interesting Perspective

The GBP/USD exchange rate increased by another 10 basis points on Wednesday, but it could add significantly more by the end of the day. Everyone is accustomed to a correction occurring before a new impulse. After five days of continuous growth, the pound failed to correct even by 50 basis points. Therefore, buyers are currently extremely strong, and the pound may continue to rise in price without any limitations.

In my view, the only thing that could restrain this new surge of buyers is the upper line of the expanding triangle I mentioned earlier. At the same time, it should be noted that the wave structure suggested the formation of a three-wave corrective structure, which we have yet to see. So, the situation continues to become more complicated and confusing, despite the apparent simplicity of the current movement.

Meanwhile, Commerzbank economists reported today that the pound was under slight pressure. It is unclear to me where they observed this pressure, but perhaps they have access to different trading charts where the pound is consistently pulling back. The bank also stated that the pound could continue to rise in the coming months amid rising inflation in the UK. I would like to remind you that inflation in the UK has risen to 2.2%, while in the U.S., it has fallen to 2.9%. Therefore, the pound is rising (because inflation is rising), and the dollar is falling (because inflation is falling). This is the logic of leading analysts at the moment. Commerzbank also noted the recovery of the British economy (by 0.6% in the second quarter) and the prospects of a more stable government (Labour, which has not been in power for the past 14 years).

This image is no longer relevant

Overall Conclusions

The wave pattern for GBP/USD still suggests a decline. If the upward trend began on April 22, it has already taken on a five-wave form. Therefore, in any case, we should now expect at least a three-wave correction. In my view, in the near future, it is advisable to consider selling the instrument with targets around 1.2627, which corresponds to the 38.2% Fibonacci level, and lower. However, a clear sell signal is now needed to open short positions. With the current growth of the instrument, the wait might be long.

On a larger wave scale, the wave pattern has transformed. We can now assume the formation of a complex and extended upward corrective structure. At the moment, it is a three-wave pattern that may develop into a five-wave structure, possibly taking several more months, or even longer, to complete.

Key Principles of My Analysis:

  1. Wave structures should be simple and clear. Complex structures are difficult to trade and often change.
  2. If you are unsure about what is happening in the market, it is better to stay out of it.
  3. There is never 100% certainty in the direction of movement. Don't forget about protective Stop Loss orders.
  4. Wave analysis can be combined with other types of analysis and trading strategies.
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
Technical analysis
EUR/USD and GBP/USD March 19 – Technical Analysis The pair is currently testing the upper boundaries of the monthly Ichimoku cloud at 1.0943 and the weekly cloud at 1.0946. If buyers can consolidate in the bullish zone relative
Evangelos Poulakis
06:36 2025-03-19 +02:00
1060
Technical analysis
EUR/USD Forecast for March 19, 2025 We've arrived at the key event of the week—the Federal Reserve's monetary policy decision. The interest rate is expected to remain unchanged, but we are eager to see what Jerome
Laurie Bailey
05:05 2025-03-19 +02:00
1585
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

GBP/USD Analysis – March 18th

The wave structure for GBP/USD remains somewhat ambiguous yet generally clear. At present, there is a high probability that a long-term downward trend is forming. Wave 5 has taken
Chin Zhao 18:45 2025-03-18 UTC+2

EUR/USD Analysis – March 18th

The wave structure on the four-hour chart is at risk of transforming into a more complex formation. A new downward wave structure began forming on September 25, taking the shape
Chin Zhao 18:43 2025-03-18 UTC+2

EUR/USD Analysis – March 17th

The 4-hour wave analysis for EUR/USD is at risk of transforming into a more complex structure. A new downward trend began on September 25, taking the form of a five-wave
Chin Zhao 17:34 2025-03-17 UTC+2

Weekly Forecast Based on Simplified Wave Analysis for GBP/USD, AUD/USD, USD/CHF, EUR/JPY, #Ethereum, and #Litecoin – March 17th

GBP/USD Since January, an upward wave has been forming on the GBP/USD chart. The wave structure analysis shows that this wave remains incomplete. After breaking through another resistance level
Isabel Clark 09:34 2025-03-17 UTC+2

Weekly Forecast Based on Simplified Wave Analysis for EUR/USD, USD/JPY, GBP/JPY, USD/CAD, #Bitcoin, and #Ripple – March 17th

Since February 3 of this year, the chart of the euro has been forming an upward wave zigzag. The wave structure analysis indicates that a correction is forming
Isabel Clark 09:23 2025-03-17 UTC+2

Weekly Forecast BasSimplified Wave Analysis for GBP/USD, AUD/USD, USD/CHF, EUR/JPY, Ethereum, and Litecoin on March 10th

Analysis:The upward wave that started on January 13th remains incomplete, forming a new segment of the dominant global uptrend. The pair is currently trading within a narrow range between opposing
Isabel Clark 09:26 2025-03-10 UTC+2

Weekly Forecast Based on Simplified Wave Analysis for EUR/USD, USD/JPY, GBP/JPY, USD/CAD, GOLD, and Bitcoin on March 10th

Analysis:Since early February, the euro has been forming an upward zigzag wave, marking the beginning of a new bullish trend. The pair has reached a significant potential reversal zone
Isabel Clark 09:20 2025-03-10 UTC+2

GBP/USD Analysis – March 5th: The Pound Benefits from Trump

The wave structure for GBP/USD remains somewhat ambiguous but still largely understandable. Currently, the likelihood of forming a long-term downward trend remains high. Wave 5 has taken a convincing shape
Chin Zhao 19:25 2025-03-05 UTC+2

EUR/USD Analysis – March 5th

The wave pattern on the 4-hour EUR/USD chart appears clear and structured. A new downward cycle began on September 25, forming a five-wave impulse structure. Two months ago, a corrective
Chin Zhao 19:23 2025-03-05 UTC+2

GBP/USD Analysis – March 4th

The wave structure of the GBP/USD instrument remains somewhat ambiguous but still comprehensible. At present, there is a high probability of forming a long-term bearish trend segment. Wave
Chin Zhao 18:35 2025-03-04 UTC+2

Top analytics

Relevance up to 22:00 2025-03-19 UTC--4
GBP/USD Forecast for March 19, 2025
05:05 2025-03-19
Technical analysis
Relevance up to 21:00 2025-03-19 UTC--4
EUR/USD Pair Overview – March 19: What Will the Fed Meeting Change?
03:34 2025-03-19
Fundamental analysis
Relevance up to 23:00 2025-03-19 UTC--4
EUR/USD Forecast for March 19, 2025
05:05 2025-03-19
Technical analysis
Relevance up to 21:00 2025-03-19 UTC--4
GBP/USD Pair Overview – March 19: The Inertial Growth Continues
03:34 2025-03-19
Fundamental analysis
Relevance up to 21:00 2025-03-19 UTC--4
Trading Recommendations and Analysis for EUR/USD on March 19: Slow but Steady Rise Ahead of the Fed Meeting
03:34 2025-03-19
Trading plan
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.