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Technical analysis

GBPUSD Elliott Wave Analysis Ahead of UK Labor Market Report

Sanmi Adeagbo | Nov. 13, 2018
GBPUSD Elliott Wave Analysis Ahead of UK Labor Market Report

November 13, 2018 | AtoZ Markets

The Cable has rallied back to 1.29 after yesterday's fast break below it. Sterling has lost more than 2% in the last four trading days following an increasingly strong Dollar. The Brexit deal still remains in limbo while the market awaits today's UK labor market report.

GBPUSD continued the bearish trend yesterday with a break below 1.29. Last week, after another positive Brexit headlines, Cable jumped by 100 Pips to 1.2935. Though price slumped back below 1.29 yesterday, that was yet another prove that Brexit headlines can cause spiky price deflections anytime. In the Asian session today, price gradually found its way close to 1.29 which has been maintained so far early in the London session.

The market expects today's UK labor market to support the Sterling as wage growth accelerates to a 10-year high while the unemployment data is stuck to decade low of 4%. Despite this, the technicals are still printing bearish scenarios unless a fast break happens above the 1.3 handle.

GBPUSD Elliott wave Analysis and Important Price Levels

From 1.3175, a bearish impulse wave is emerging after a fast dip to break below 1.292 support level. Price is currently retracing to 1.29-1.292 price zone which might serve as a resistance. GBPUSD is probably in 4th wave of the impulse wave of this degree and might continue downside afterwards. The 5th wave should extend to 1.27 support and 1.266 August low. A big bullish correction might follow from 1.27-1.266 price zone. On the upside, if price rallies fast above 1.2950-1.3 we might see a revisit of 1.3175.

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Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZ Markets.com, nor should they be attributed to AtoZMarkets.