GBP/USD Forecast: Pound Sterling remains fragile ahead of US data
GBP/USD staged a rebound and stabilized above 1.3300 after falling toward 1.3270 early Thursday. The pair’s technical outlook is yet to point to a buildup of bullish momentum as investors await macroeconomic data releases from the US.
GBP/USD came under bearish pressure midweek as the US Dollar (USD) preserved its strength despite the disappointing growth reading. The US Bureau of Economic Analysis reported on Wednesday that the US’ Gross Domestic Product (GDP) contracted at an annual rate of 0.3% in the first quarter, according to the initial estimate. Read more…
GBP/USD Elliott Wave technical analysis [Video]
The daily analysis of GBPUSD shows a counter-trend correction unfolding inside a larger bearish movement. The pair has finished the navy blue wave 1 decline and has now started the navy blue wave 2 correction, continuing within the broader gray wave 1 downtrend. This setup suggests a short-term upward retracement before the primary bearish trend possibly resumes.
The navy blue wave 2 indicates a correction phase that usually retraces between 38% and 61% of wave 1’s drop. This often forms standard corrective patterns like zigzags or flats. After the strong downward movement of wave 1, the conditions are now set for this pullback, typically featuring overlapping prices and weaker momentum. The daily timeframe points to an intermediate-term pause in the overall bearish sequence. Read more…