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
24.04.2025 12:59 AM
The Pound Holds On, but a Reversal Is Near
Open trading account Open demo account

Inflationary pressure in the UK is gradually easing but remains elevated. In March, the core index fell from 3.5% to 3.4% year-over-year, while the headline CPI dropped from 2.8% to 2.6%. Meanwhile, the labor market remains tight, and average wage growth is not slowing.

This image is no longer relevant

The next Bank of England meeting is scheduled for May 8, and recent labor market and inflation data will play a key role in shaping the decision. At its previous meeting, the BoE kept the interest rate unchanged at 4.5%, citing a negative inflation outlook and heightened economic uncertainty. The latest data, however, can be considered positive—UK GDP grew by 0.5% in February, and the prospects of signing a trade agreement with the US without significant damage are now seen as fairly achievable.

Markets expect the BoE to cut rates by 25 basis points but not more than that. Moreover, the anticipated cut is not seen as the beginning of a complete normalization cycle. In February, the Bank projected inflation at 3.7% in Q3, as energy prices are expected to rise—so a swift rate-cutting path looks unlikely. This can be seen as a potentially bullish factor for the pound, but its weight remains fragile due to high uncertainty. The market is unlikely to price in such long-term expectations. Inflation may pick up again—or the opposite may happen, where a weakening economy eventually dampens price growth. Both scenarios are entirely plausible.

The net long speculative position on GBP decreased by $983 million over the reporting week to $538 million—essentially to a neutral level. The fair value is below the long-term average and shows a tendency for further decline.

This image is no longer relevant

Last week, we suggested that the pound's bullish impulse was nearing exhaustion. However, GBP still managed to reach the strong resistance level at 1.3433, driven by a broad sell-off in the dollar—so it pushed higher along with the market. At the same time, the fair value continues to decline, which makes the pound's rally look like a temporary reaction to another unexpected move from Trump rather than something grounded in fundamentals.

We expect a decline to begin from current levels, with the nearest target at the technical level of 1.3107, followed by a potential attempt to break below 1.3013.

Kuvat Raharjo,
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
Fundamental analysis
XAU/USD. Analysis and Forecast Gold is declining below the $3300 level today. U.S. PCE data met expectations. A shift in trade flows is helping the U.S. dollar regain positive momentum. This is also undermining
Irina Yanina
17:37 2025-05-30 +02:00
2485
Wave analysis
GBP/USD Analysis on May 30, 2025 The wave structure for GBP/USD continues to indicate the development of an upward impulsive wave pattern. The wave pattern is almost identical to that of EUR/USD. Until February
Chin Zhao
17:31 2025-05-30 +02:00
2050
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

XAU/USD. Analysis and Forecast

Gold is declining below the $3300 level today. U.S. PCE data met expectations. A shift in trade flows is helping the U.S. dollar regain positive momentum. This is also undermining
Irina Yanina 17:37 2025-05-30 UTC+2

Inflation Is Almost Under Control

While the euro continues to hold its ground against the dollar, European Central Bank (ECB) Governing Council member Fabio Panetta indicated during an interview today that inflation in the eurozone
Jakub Novak 13:40 2025-05-30 UTC+2

USD/CAD. Analysis and Forecast

The USD/CAD pair is attempting to regain positive momentum today, though traders remain cautious ahead of the key U.S. Personal Consumption Expenditures (PCE) Price Index release. As a preferred inflation
Irina Yanina 13:22 2025-05-30 UTC+2

EUR/USD. Analysis and Forecast

The EUR/USD pair continues to struggle to recover after rebounding from the 1.1200 level reached earlier, showing a moderately negative bias, although the decline remains limited. The U.S. dollar
Irina Yanina 13:19 2025-05-30 UTC+2

Legal Disputes Between Trump and Companies Over Tariffs Will Negatively Impact Markets (There Is a Likelihood of Continued Decline in Bitcoin and Litecoin Prices)

Global markets are significantly influenced by events occurring in the United States, where both political and economic spheres continue to swing like a pendulum. Earlier this week, after the U.S
Pati Gani 11:11 2025-05-30 UTC+2

More Time is Needed

Dallas Federal Reserve Bank President Lorie Logan indicated yesterday that it might take some time before policymakers understand how the economy will react to tariffs and other policy changes
Jakub Novak 10:53 2025-05-30 UTC+2

The ECB Should Not Delay Rate Cuts

While the euro is trying to regain its monthly highs after a fairly significant correction seen this week, a survey of several economists shows that the European Central Bank
Jakub Novak 10:49 2025-05-30 UTC+2

Markets Demand an Appeal

The S&P 500 started the day strong but ended on a downbeat note. Initially buoyed by the U.S. Court of International Trade's ruling that the White House's tariffs were illegal
Marek Petkovich 10:33 2025-05-30 UTC+2

What to Pay Attention to on May 30? A Breakdown of Fundamental Events for Beginners

Several macroeconomic reports are set to be released on Friday, but none are deemed particularly significant. In Germany, the inflation report for May will be released, with expectations
Paolo Greco 06:51 2025-05-30 UTC+2

GBP/USD Overview – May 30: Justice Has Prevailed, but for How Long?

The GBP/USD currency pair closed below the moving average line on Thursday, and the dollar strengthened for three consecutive days. However, everything changed in the second half
Paolo Greco 03:51 2025-05-30 UTC+2

Top analytics

Relevance up to 04:00 UTC--4
Legal Disputes Between Trump and Companies Over Tariffs Will Negatively Impact Markets (There Is a Likelihood of Continued Decline in Bitcoin and Litecoin Prices)
11:11 2025-05-30
Fundamental analysis
Relevance up to 11:00 UTC--4
Trading Signals for GOLD for May 30, 2025: buy above $3,281 (200 EMA - 6/8 Murray)
17:35 2025-05-30
Technical analysis
Relevance up to 11:00 UTC--4
Trading Signals for EUR/USD for May 30, 2025: sell below 1.1350 (21 SMA - 5/8 Murray)
17:33 2025-05-30
Technical analysis
Relevance up to 02:00 UTC--4
Markets Demand an Appeal
10:33 2025-05-30
Fundamental analysis
Relevance up to 10:00 UTC--4
The Dollar Puts on a Brave Face Amid Adversity
00:50 2025-05-30
Fundamental 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.