In the last Bank of England’s meeting, the central gave a signal for a potential interest rate hike in 2022. This would put it ahead of a number of other G10 central banks, including RBA, U.S Fed, BOJ, and ECB. The hawkish outlook by the central bank could potentially provide underlying support for Pound Sterling.
GBPUSD Potential Weekly Inverse Head and Shoulder
GBPUSD weekly chart above shows a potential 3 years inverse head and shoulder pattern. Pair has broken above the neckline of the inverse head and shoulder. Measuring the distance between the head and neckline, then projecting it from the point of the breakout yields a target towards 1.55.
GBPUSD Weekly Elliott Wave View
Weekly Elliott Wave chart of GBPUSD above shows the rally from March 2020 low unfolded as a 5 waves impulse Elliott Wave structure. Up from March 2020 low, wave ((1)) ended at 1.2648 and pullback in wave ((2)) ended at 1.2077. Pair extended higher again in wave ((3)) towards 1.3483. Dips in wave ((4)) ended at 1.2676. Final leg higher wave ((5)) ended at 1.4251. This completed wave I in higher degree. Wave II pullback has either ended at 1.3572, or else it can do a double correction with next potential support at 1.2861 – 1.3288 area for further upside or 3 waves rally at least.
Source: https://elliottwave-forecast.com/forex/gbpusd-potential-inverse-head-and-shoulder-target-1-55/