GBPUSD Elliott Wave Analysis: Sterling Steps Back Below 1.3 Amid Political Concerns

November 15, 2018 | AtoZ Markets

Pound sterling dazzled around 1.3 with big spikes above and below it after a turgid Wednesday. Brexit deal still weighs high on this currency pair. What next from technical perspective?

After striking a draft Brexit agreement with the EU, prime minister Theresa May is faced with the herculean task of selling it to the parliament. She managed to pass the deal to her cabinet ministers yesterday but whether she will advance from here successfully is difficult to ascertain. This uncertainty is weighing heavily on the Pound. GBPUSD spiked back and forth yesterday around 1.3 while the UK CPI came slightly below expectation. While Brexit headlines will be the major concerns around Sterling, today’s retail sales data from UK and US may also weigh especially if there are surprises. UK retail sales data is expected to come at 0.2% while the same data in the US is expected at 0.6% m/m (core retail sales expected at 0.5%).

GBPUSD Elliott wave analysis and Important price levels

In the last update, we expected 1.292 to hold as a resistance as the bearish move from 1.3175 continued. The development of the pattern was interrupted by the Brexit reports. Sterling has however, returned downside after yesterday’s 1.288-1.307 up and down spikes to complete a zigzag correction from 1.283.

The chart above shows price breaking below 1.2830 to continue the year long bearish trend as uncertainties surround the Brexit deal. Price is expected to continue to 1.27 – 1.266 support zone to complete the continuation of the bearish trend from 1.3175.

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