Cable Elliott Wave: GBPUSD Recovery Looks Constructive After UK Data

Good day to everyone,

Some FX majors could stay a bit slow, maybe even until next week's Fed decision. But when I look at cable, it looks constructive for more gains after some setback.

UK data helps here. Yesterday unemployment dipped to 4.7%, and this morning CPI came in hotter at 3.5%, up from 3.1% in August. That makes it harder for the Bank of England to sound dovish, which is a reason why GBP can stay in recovery.

Technically, we've been tracking a bearish impulse since late August. After the spike to a new 2026 low, the pound saw a nice and strong recovery, and it is now trading above the upper line of the previous downward base channel. That's important, as it suggests a low could be in place.

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The current leg up may be the first leg, wave A, of a minimum three-wave ABC recovery, so more upside could follow in the near term. However, be aware of a wave B pullback towards the 1.3230–1.3300 support area before a move higher in wave C towards the 1.3478 bullish level. As long as 1.3140 holds, the recovery idea stays valid.

So I'll be watching for setbacks before moving higher.

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Trade well,

Grega