Sterling slips to 2 weeks low after negative Brexit headlines and worse retail data. It’s currently trading around 1.3020, close to 1.3 handle. Will price break below 1.3? What’s is the next bearish target?
The first 10 trading days of this month was good for GBPUSD currency pair. It gained more than 300 Pips within this period after some positive headlines concerning Brexit. However, the days that follow have been bad for the Brexit deal. EU and the UK government have not been able to successfully complete the deal. Negotiations are very tough and sometimes ended in a kind of mess and tough words from leaders on the two sides.Price has now dropped more than 200 Pips this week with negative UK data contributing to the bearish move. This plays out with the last GBPUSD technical update. It seems 1.3 handle would soon be taken out.
GBPUSD Elliott Wave Analysis and Important Price Levels
The bearish trend continues as price drops below 1.3080 weekly support. Price is consolidating around 1.303 (last week support). A bridge of 1.30 will most probably see further declines below 1.3 up to 1.29-1.28 to complete the bearish impulse wave from 1.326. On the upside, a surge above 1.308 might see the bullish continuation scenario as the drop from 1.3235-1.326 will be interpreted as a bearish correction instead of a trendy impulse wave.
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