GBP/USD Pulls Back Against 1.4896 Low
Elliott Wave Forecast | Dec 15, 2015 07:49PM ET
We have 2 important news events for British pound on Wednesday 12.16.2015
-Average Earnings Index at 9:30 AM GMT (UK Time)
-Claimant Count Change at 9:30 AM GMT (UK Time)
Both news events could bring some volatility into GBP pairs on Wednesday morning, however GBP/USD will be more affected by the USDX reaction on the FOMC events at evening 7:00 PM GMT (UK Time) / 2:00 PM EST
It’s well known fact that Technical Analysis is always a step ahead of Fundamental Events. We believe there is no way to make good trade decisions based on Fundamentals, however these events brings volatility to the market so we should be aware of them.
We are going to get through some GBP/USD data we have so far.
The chart below is Elliott Wave analysis on 12.08.2015 ( NY Update). The pair has given us nice rally from the marked area: 1.4980-1.4954 and it has already reached extreme zone from the 1.4896 low.
Current price structure suggests GBP/USD has ended cycle from the 12/02 date as diagonal pattern and now doing pull back against the 1.4896 low. There are several options that might be seen on Wednesday. As far as the 1.4892 low holds, we can see GBP/USD pushing higher. If that level breaks, then GBP/USD could see extension lower towards 1.4800 – 1.4700 handle before a bounce occurs.
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