GBP/USD Poised for a Significant Rally
Technical Analysis: The GBP/USD currency pair completed wave (1) to the upside on March 8, 2024. Subsequently, the market corrected to form wave (2) on March 22 in the intermediate degree (black). Currently, the market is in wave (3), with the upward movement for this wave having begun. Within its subdivisions, wave 1 completed on March 28, and wave 2 appears to have concluded today, June 27. My forecast indicates that the currency pair is poised to rally, advancing in wave 3, followed by waves 4 and 5 in the minor degree (blue), which will complete wave 3 in the intermediate degree.
Fundamental Analysis: The prevailing inflation rate is 2 percent, while the interest rate has been maintained at 5.25 percent since August 3, 2023. This stable interest rate environment is conducive to economic growth and could support the upward momentum for GBP/USD.
Technical Indicator Analysis: A key aspect of my analysis is the identification of a bullish divergence. This occurs when the price is trending downward while the indicator trends upward, signaling a potential weakening of the bearish trend and a possible reversal. This suggests diminishing selling pressure and increasing buying interest, presenting a potential buying opportunity.
The confluence of a supportive fundamental backdrop and positive technical indicators suggests that GBP/USD is well-positioned for a rally, with the potential to complete wave 3 in the intermediate degree.
#ForexTrading #ElliottWave #GBPUSD #EconomicForecast #MalawiForexTrading #MrHowMoneyDownloading
Fundamental Analysis: The prevailing inflation rate is 2 percent, while the interest rate has been maintained at 5.25 percent since August 3, 2023. This stable interest rate environment is conducive to economic growth and could support the upward momentum for GBP/USD.
Technical Indicator Analysis: A key aspect of my analysis is the identification of a bullish divergence. This occurs when the price is trending downward while the indicator trends upward, signaling a potential weakening of the bearish trend and a possible reversal. This suggests diminishing selling pressure and increasing buying interest, presenting a potential buying opportunity.
The confluence of a supportive fundamental backdrop and positive technical indicators suggests that GBP/USD is well-positioned for a rally, with the potential to complete wave 3 in the intermediate degree.
#ForexTrading #ElliottWave #GBPUSD #EconomicForecast #MalawiForexTrading #MrHowMoneyDownloading
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