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.
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