The bear flag/channel in Sterling was broken as expected as was an old support level at 1.5269. Now that the correction to key resistance levels is complete and Wave 3 lower is underway our focus is on a continued move to 1.50 and 1.48 in the coming weeks. Short-term, resistance is now the old 1.5269 level. A small bearish triangle is forming and once complete projects a move to 1.5153. Further on the next key support comes at the pivot lows of 1.5027. From an Elliott perspective prices are clearly unfolding with little overlap and further supports that the primary trend is down. Levels: Support – 1.5174, 1.5153, 1.5027 Resistance – 1.5269/78, 1.5314, 1.5381
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Nomura