GBPUSD Elliott Wave Analysis: Price Settles Around 1.28, Awaiting US Data

GBPUSD has remain unchanged since today's market opening. Sterling is falling wildly as recent Brexit deal negotiations ended sour for UK prime minister and her team.

October 2018 | AtoZMarkets – Since last week, Brexit negotiators have refused to come to any conclusion. The deal was said to be on hold as Brexit team and the EU couldn't agree on details. GBPUSD has continued to falter. Early in the week, it dipped to its 11 week low at 1.292. Yesterday, price hit a fresh October low at 1.28 after breaking below the previous 1.292 low. More levels are expected to be taken out in the coming days. The Dollar on the other hand has resumed upside this week. The Dollar index hit above 96. Focus will be on today's US data. US Q3 GDP data is projected to rise by 3.3%. Though slower than Q2's 4.2%, it's still a healthy one. USD will react to large deviations from the expected figure.

GBPUSD Elliott Wave Analysis and Important Price Levels

From 1.326, the decline is developing into a bearish impulse wave. After price broke below the previous October low at 1.292, it was evident that the bearish trend would test 1.2785 September low and probably 1.2660 August low. The 3rd wave of this impulse wave is probably about completing. Another sideway correction might happen toward the upper line of the falling channel. In as much as price is contained in this channel, the move will continue downside after each bounce or sideway move. There are two wave counts shown above. The one in black suggests the impulse wave might complete just below 1.2785 while the second in blue suggests price would go deep into 1.266 support level. On the upside, a break above the channel could see price retesting 1.292. Above 1.292, there is 1.3085-1.3090 zone which might act as a resistance to any huge bullish move.

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