empty
InstaForex - Official partner of Dragon Racing
InstaForex - Official partner of Dragon Racing
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
Headquarters
Key documents
Social Responsibility
19.08.2024 02:02 PM
The pound gains strength
Open trading account Open demo account

A strong economy leads to a strong currency. This is a principle of fundamental analysis that remains unchanged. We all remember how the USD index surged from January to April, fueled by the revival of the American exceptionalism narrative. Investors expecting a slowdown in U.S. GDP were met with the opposite outcome, which set the U.S. apart from other countries and allowed the dollar to strengthen. Now, the UK has assumed a similar position to that of the U.S. earlier in the year. It should come as no surprise that GBP/USD is experiencing a rapid rally.

Following mixed reports on the labor market and inflation in the UK, positive data has started to emerge. The Gross Domestic Product (GDP) expanded by an impressive 0.6% in the second quarter, and retail sales jumped by 0.5% in July, with revisions showing an upward adjustment. This bolsters the belief that the economy will continue its steady progress in the third quarter. In the first half of the year, it outpaced the U.S. and confidently leads the G7.

G7 Economies' Performance

This image is no longer relevant

Strong macroeconomic data allows the Bank of England to proceed cautiously before continuing its monetary easing cycle, which began on August 1 with a reduction in the repo rate from 5.25% to 5%. Derivatives estimate the chances of a second BoE move in September at 37%. By the end of the year, borrowing costs are expected to decrease by 43 basis points, which is significantly less than the 93 basis points expected for the Federal Reserve. The different speeds of monetary policy easing provide favorable conditions for GBP/USD.

Political stability and growing global risk appetite also play into the pound's favor. Not long ago, investors had doubts about whether Keir Starmer's government could fulfill its promise to lead the UK economy to the top of the G7. The budget deficit seemed enormous, and the proposed tax hikes exerted downward pressure on the pound. However, recent macroeconomic data suggests that the Labour Party didn't have to exert much effort: when major competitors, led by the U.S., slow down, the UK gets a chance. So far, it's seizing that opportunity successfully.

I doubt that GBP/USD could have reached the 1.3 level without the rapid rally in U.S. stock indices. Both the S&P 500, Nasdaq, and the Dow Jones index saw their best weekly performance since November, as the market transitioned from fear to greed. While the specter of recession haunted investors in early August, by mid-month, it had been largely forgotten. Global risk appetite is growing, and the U.S. dollar is being sold off as a safe-haven asset.

This image is no longer relevant

The GBP/USD rally is also supported by expectations of signals pointing to the imminent start of the Fed's monetary easing, which are expected to be included in the minutes of the July FOMC meeting and Jerome Powell's speech at Jackson Hole.

Technically, on the daily chart, GBP/USD has managed to consolidate above its moving averages, trend line, and fair value level. This is a clear bullish signal and a reason to increase long positions formed from the 1.28 level. The target levels are 1.3015 and 1.3140.

Marek Petkovich,
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
Forecast for EUR/USD on June 19, 2025 On Wednesday, the EUR/USD pair resumed its decline after a short pause and by Thursday morning settled right around the 76.4% Fibonacci retracement level at 1.1454. A rebound from this
Samir Klishi
11:20 2025-06-19 +02:00
1015
Technical analysis
Forecast for GBP/USD on June 19, 2025 On the hourly chart, the GBP/USD pair continued its decline on Tuesday and Wednesday after bouncing off the resistance zone of 1.3611–1.3633 and closed below the support zone of 1.3425–1.3444
Samir Klishi
11:13 2025-06-19 +02:00
1015
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

Bank of England to Keep Rates Unchanged

Today, the Bank of England is expected to keep interest rates at 4.25% and signal that it is maintaining its approach of one cut every other meeting, as policymakers
Jakub Novak 11:02 2025-06-19 UTC+2

The Fed Maintains Its Previous Position

The U.S. dollar responded with growth, while risk assets such as the euro and pound declined. Following yesterday's meeting, Federal Reserve officials stated they expect two interest rate cuts
Jakub Novak 10:58 2025-06-19 UTC+2

The Iran-Israel War Has Yet to Exert Significant Negative Influence on Markets (Limited downside risk for gold and upward momentum for #USDX remains possible)

As expected, the U.S. central bank left all key monetary policy parameters unchanged, once again citing ongoing uncertainty about the future state of the national economy—a factor that has become
Pati Gani 09:14 2025-06-19 UTC+2

The Market Keeps Its Options Open

While the White House and the Federal Reserve are in wait-and-see mode, the market has also decided to hold steady. Donald Trump has yet to make a final decision
Marek Petkovich 09:08 2025-06-19 UTC+2

What to Pay Attention to on June 19? A Breakdown of Fundamental Events for Beginners

No macroeconomic reports are scheduled for Thursday. The only points of attention today will be Christine Lagarde's speeches and the results of the Bank of England meeting, which will
Paolo Greco 06:45 2025-06-19 UTC+2

GBP/USD Overview – June 19: UK Inflation and the Bank of England Meeting

The GBP/USD currency pair traded relatively calmly on Wednesday, though the day before, it had posted a substantial decline in the second half of the session—more than 100 pips
Paolo Greco 04:02 2025-06-19 UTC+2

EUR/USD Overview – June 19: Trump Continues to Work Wonders

The EUR/USD currency pair traded more calmly on Wednesday than the previous day. However, the previous day's significant movement also began only closer to the evening. It was not related
Paolo Greco 04:02 2025-06-19 UTC+2

GBP/USD. Inflation, the Bank of England, and Geopolitics

GBP/USD traders did not react to the UK inflation growth report that was published on Wednesday, just before the June Bank of England meeting. The focus of the market remains
Irina Manzenko 00:42 2025-06-19 UTC+2

The Canadian Dollar Still Looks Like a Favorite

Markets remain cautious as several high-impact events loom that could significantly alter the risk balance—namely, the FOMC meeting on Wednesday evening and a potential U.S. intervention in the war between
Kuvat Raharjo 00:42 2025-06-19 UTC+2

The Dollar Is Caught in a Vicious Cycle

The U.S. dollar has become an outcast—not just globally, but even at home. The White House supports everything from stock indices to Bitcoin and even gold through policy uncertainty
Marek Petkovich 00:42 2025-06-19 UTC+2

Top analytics

EUR/USD Overview – June 18: Will the Fed Save the Dollar?
03:57 2025-06-18
Fundamental analysis
EUR/USD Forecast for June 18, 2025
05:49 2025-06-18
Technical analysis
Trading Recommendations and Analysis for GBP/USD on June 18: Pound Remains in a Flat Range
03:56 2025-06-18
Trading plan
Trading Recommendations and Analysis for EUR/USD on June 18: The Dollar Rises Paradoxically
03:56 2025-06-18
Trading plan
USD/JPY Forecast for June 18, 2025
04:58 2025-06-18
Technical analysis
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.