GBP/JPY Waiting for the Breakout

3 min read

Hi Trader,

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.

Scenario 1: Weekly Chart GBP/JPY Still in WXY Correction

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:

  • Wave B is expected to display a wxy (purple) structure.
  • The price rejected three times at the resistance 1 level (147.85).

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

Scenario 2: Weekly Chart GBP/JPY Still in ABC Correction

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 invalidation level of wave 1 (purple) is the break of wave B (red) which is exactly at 50% fib level.
  • A break above 147.85 before price breaks 135.50 probably confirms this scenario.

The next resistance ahead is between the area 160.00 to 163.00.

Image Weekly Chart GBP/USD

Many green pips,

Elite CurrenSea team

More info on our ecs.SWAT course and trading system

Twitter: @EliteCurrenSea

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