Brexit's Deep Correction

FX:GBPUSD   British Pound/U.S. Dollar
85 0 4
Britons voted to leave the EU
They have not invoked article 50 yet to start a 2 year negotiation with Brussels on their divorce from the union - So, Britain is still a member of the EU. Therefor nothing has really changed yet.
The Govenment resigns failing to convince voters to remain - A new government has just been sworn in.
Recession is very likely, however governer Carney of the BoE has decided to leave rates unchanged for the time being. He is taking a "wait and see" approach and may even choose stimulas first instead of reducing interest rates by 25 bp             .

Technically - The pair bottomed and formed a base for most of last week. This can be seen as a period of accumulation. Price broke out to the upside on the 12th rising some 500 pips to point 1, from the recent lows.

We can see a cup and handle formation that has just been completed at point 1 and a handle at point 2. Price now looks as if it is completing wave 3 of a possible 5 wave bullish cycle. I am expecting price to continue upwards to close the gap around 1.3630 and to complete the 3rd wave in the price cycle before a deeper reaction to the downside. Then a resumption to point 5, being the last wave before further analysis is required.
United States
United Kingdom
Home Stock Screener Forex Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators For the WEB Widgets Stock Charting Library Priority Support Feature Request Blog & News FAQ Help & Wiki Twitter
Private Messages Chat Ideas Published Followers Following Priority Support Public Profile Profile Settings Account and Billing Sign Out