Published 29th November 2018
Wave action is likely to unfold sooner or later to the downside. Big moves get most often accompanied by big news. The House of Commons is going to vote on December 11th on the Brexit deal. FT describes this as “one of the most momentous parliamentary decisions for more than half a century”.
We do not know if the GBP/USD Elliott wave pattern will resolve on that date or the next trading day. Minute wave ii(circle) could take more time. The blue sideways channel could kick the can until May 2019. It looks like a complex sideways combination. The main challenge with the pattern is that it could resolve at any time. The Brexit process provides enough fertile ground regarding a potential narrative.
All in all, we remain bearish on the sterling. The pattern will most likely resolve sooner or later to the downside.
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