The news flow from the UK will be the most interesting. In Europe, there will be very few significant events, and in the U.S., many important reports will again be missed rather than published. However, the UK will delight us with a wealth of important data. The key is that this data should, in turn, favor the British pound.

In my opinion, wave analysis is currently the cornerstone of all analysis. The current wave analysis suggests a rise in quotes and the formation of a bullish trend segment. We have observed a five-wave corrective structure, so it is now reasonable to expect the construction of an ascending wave set. The news backdrop must not hinder this process. Let's break down the calendar of events.

On Tuesday, employment and wage levels will be released. These are important reports in terms of their impact on the Bank of England's monetary policy, which was on the verge of cutting interest rates for the fourth time this year. It was just one vote short. Therefore, the rise in inflation, as warned by the central bank itself, will only bring the next policy easing closer. In my view, the key indicator remains inflation, which is at its highest level since February 2024 —nearly two years ago. Inflation exceeds the BoE's target by almost double, so I do not believe the central bank will conduct a new round of easing until inflation slows down even slightly. Thus, the unemployment rate may rise to 4.9%, and if inflation in the next report comes in below 3.8%, the BoE may cut rates once more in December. Such a prospect is not the best for the pound.

On Thursday, the UK will release GDP and industrial production reports. However, there isn't much to discuss here. The growth rate of the British economy remains weak, and the BoE also lowered its forecasts for the next two years this week. Therefore, an economic growth of 0.2-0.3% in the third quarter will be seen as a positive outcome for the pound. Based on all of the above, the pound will find it difficult to continue its rise if the market logically reacts to the news backdrop. Nonetheless, I believe in continued growth based on the wave analysis.

Wave Picture for EUR/USD:

Based on the analysis of EUR/USD, I conclude that the instrument continues to construct a bullish segment of the trend. In recent months, the market has taken a pause, but the policies of Donald Trump and the Fed remain significant factors for the future decline of the U.S. currency. The targets for the current segment of the trend may reach up to the 25 figure. Currently, construction of corrective wave 4 continues, taking on a highly complex, elongated form. Its latest internal structure, a-b-c-d-e, is near completion or has already been completed. Thus, I am considering buying again, as all recent downward structures appear corrective.

Wave Picture for GBP/USD:

The wave picture for the GBP/USD instrument has changed. We continue to deal with a bullish, impulsive segment of the trend, but its internal wave structure is becoming more complex. Wave 4 has taken on a three-wave form, resulting in a very elongated structure. The downward corrective structure a-b-c-d-e in c of 4 is presumably nearing completion. I expect the main wave structure to resume its development with initial targets around the 38 and 40 figures.

Key Principles of My Analysis:

1. Wave structures should be simple and clear. Complex structures can be difficult to interpret and often undergo changes.
2. If there is no confidence in what is happening in the market, it is better not to enter it.
3. There can never be 100% certainty in the direction of movement. Don't forget about protective Stop Loss orders.
4. Wave analysis can be combined with other types of analysis and trading strategies.