Elliott wave analysis of GBP/JPY for May 16, 2019

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The GBP/JPY pair broke below support at 141.05 and dipped to the low of 140.18. The failure to stay above support at 141.05 opens the way for a dip closer to 139.64 as long as resistance at 141.25 is able to cap the upside.

That said, we have noticed that the drop to 140.18 has been followed by a weak momentum and now a low can be found anytime, but only a breakout above 141.25 will confirm the low and the development of the new impulsive rally towards 151.50.

R3: 142.13

R2: 141.87

R1: 141.25

Pivot: 140.85

S1: 140.40

S2: 140.18

S3: 139.64

Trading recommendation:

Our stop at 140.25 has been hit for a 100 pips loss. We will re-buy GBP at 139.80 or upon a breakout above 141.25.

The material has been provided by InstaForex Company - www.instaforex.com