Pound Sterling Price News and Forecast: GBP tests six-week highs as traders brace for BoE tightening

British Pound tests six-week highs as traders brace for BoE tightening

The British Pound (GBP) rallies for the third consecutive day against the US Dollar (USD) on Friday, following a soothing UK budget earlier this week, with the focus on a widely expected interet rate hike by the Bank of England next week. The GBP/USD pair is pushing against six-week highs around 1.3420 as of writing, on track to complete a three-week rally.

UK Nationwide Housing Prices remained flat in October, according to data released on Friday, beating expectations of a 0.2% contraction and following a 0.3% decline in September. Read more...

GBP/USD Price Forecast: Strengthens above 1.3350, but retains bearish tone below 100-day SMA

The GBP/USD pair trades in positive territory around 1.3380 during the early European trading hours on Friday. The British Pound (GBP) strengthens against the US Dollar (USD), while markets digest the UK Autumn Budget and look ahead to upcoming Bank of England (BoE) decisions.

The United Kingdom (UK) set out a target date for defense spending to rise to 3% of Gross Domestic Product (GDP), as the Finance Minister John Healey announced billions in aid for Ukraine in a “clear message to Moscow.” Healey on Wednesday set a target date of 2030 for the 3% figure while reaffirming its NATO commitment to reach 3.5% by 2035. Read more...

Elliott Wave view: GBP/USD eyeing a three wave zigzag rally before resuming the downtrend [Video]

The short-term Elliott Wave outlook for GBPUSD suggests that the decline from the August 21 high is unfolding as a zigzag corrective structure. The initial leg lower, labeled wave A, completed at 1.314, as shown on the 1-hour chart. Following that low, the pair began a wave B recovery. This rally is expected to correct the decline from the August 21 peak before the broader bearish sequence resumes.

Wave B is taking shape as another zigzag pattern of a lesser degree. From the wave A low, wave (i) advanced to 1.3276 before a pullback in wave (ii) ended at 1.323. The pair then resumed higher in wave (iii), reaching 1.337. A subsequent correction in wave (iv) found support at 1.3298. From there, the final push higher in wave (v) extended to 1.3419, completing wave ((a)) of the larger-degree wave B correction. Read more...