GBP/USD mired at seven-month lows amid political and fiscal concerns
The GBP/USD pair declined to 1.3149 on Friday, hovering near a seven-month low. The sell-off was triggered by the government’s abrupt abandonment of plans to raise income tax rates ahead of the Autumn Statement on 26 November.
According to the Financial Times, Prime Minister Keir Starmer and Chancellor Rachel Reeves have scrapped the previously debated increases to basic and higher tax rates. Instead, they will seek more indirect measures to address a budget deficit estimated at £30 billion. Read more…
GBP/USD Elliott Wave: Sterling ready to shine
Back on October 23, while trading at 1.3343, we forecasted a decline in GBP/USD to reach 1.3050-1.3139. On November 5, Cable reached a low price of 1.3010. It is possible to consider the correction that began on July 2 complete at last week’s low.
If a major low is in place, then Cable may stage a large rally. GBP/USD carved a wave ((x)) high on September 17 at 1.3726. The decline since September 17 fits best as wave ((y)) labeled (a)-(b)-(c). Read more…
