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Technical analysis

GBPUSD Elliott Wave Analysis: Sterling Drops to a 2 Weeks Low

Sanmi Adeagbo | Nov. 27, 2018
GBPUSD Elliott Wave Analysis: Sterling Drops to a 2 Weeks Low

November 27, 2018 | AtoZ Markets The sterling has dropped to its lowest price since 15th November. Amid Brexit concerns, the British Pound is falling under more bearish pressure. The following looks at what could happen next based on Elliott wave theory.

UK prime minister. Theresa May, looks forward to sell her Brexit ideas to the house of commons next month. The agreement with the EU has raised many eyebrows with some suggesting the deal might not get the needed support from the MPs next month. The Pound therefore remains under more bearish pressure. Before the next month vote, Brexit headlines will still be major risk concerns for GBP traders. The US-China trade battle is next in line. USD gained in the Asian-London session after China denied progress of trade-talks with the US. From technical analysis perspective, the trend is still bearish for GBPUSD and might continue to 1.26.

GBPUSD Elliott Wave Analysis and Important Price Levels

After the bullish corrective rally from 1.2725 to 1.292, price might be on its way to complete a leading diagonal pattern at 1.26. In the last update,we looked at the leading diagonal pattern from 1.3175 and expected a break below 1.2725 to continue the bearish trend to 1.26 support level.

Price broke below 1.2725-1.292 zigzag channel and is expected to continue to 1.26. This should be able to happen by the end of this week. A corrective rally might happen thereafter to retest 1.292-1.3 price zone before it returns downside. A lot will depend on Brexit and other high impact political and economic events which we can expect price to adjust to.

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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.