Elliott wave analysis of GBP/JPY for July 29, 2019

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GBP/JPY has disappointed by breaking back below support at 134.68 and more importantly below support at 134.22. This break has reopened the downside for a dip to a new low near 133.53 before wave 2 can be considered complete.

Short-term minor resistance is seen at 134.70 and again at 135.16, which is expected to cap the upside for more downside pressure towards 133.53.

Only a direct break above the peak at 135.65 will shift the bias to a positive view.

R3: 135.65

R2: 135.16

R1: 134.70

Pivot: 134.38

S1: 134.10

S2: 133.82

S3: 133.53

Trading recommendation:

We took a small loss of 20 pips as out stop at 134.65 was hit. We will re-buy GBP at 133.65 or upon a break above 135.65

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