The GBP/JPY is currently in a massive and lengthy correction and seems to be confusing many Forex traders.
It’s time for a closer look at the “Ferrari” of the market, the GBP/JPY.
Our article discusses the two medium-term scenarios.
In this scenario, the currency pair already completed 5 red waves and price is now in a correction phase. The major correction is probably an ABC (red), here are the details of the image below:
This structure indicates that price just completed a wave x (purple) and price is now building a wave y (purple) of wave B (Red). The next bullish bounce could occur again at the 50% Fib support zone (lower yellow zone).
Image Weekly Chart GBP/JPY
In this scenario, we expect the wave B (red) is already in fact completed. If that is so, then the break of the resistance 1 is likely to occur sooner as the wave c (black) unfolds towards the second resistance level.
The next resistance ahead is between the area 160.00 to 163.00.
Image Weekly Chart GBP/USD
Many green pips,
Elite CurrenSea team
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