Elliott wave analysis of GBP/JPY for August 11, 2020

analytics5f3221d7e4206.jpg

GBP/JPY tested support at 137.83 but failed to develop another rally towards resistance at 139.21. Ultimately we expect this resistance to be broken for a continuation higher towards 140.35. This new spike higher at 140.35 should complete blue wave iii and set the stage for a sideways consolidation. The pair may dip to 137.92 before the next push higher towards 144.29 and ultimately a continuation higher to 148.32 occur.

Support is now seen at 138.33 and the next one is at the 137.83 level.

R3: 140.35

R2: 140.00

R1: 139.55

Pivot: 139.21

S1: 138.64

S2: 138.33

S3: 137.83

Trading recommendation:

We will take profit on 50% of our long GBP position at 140.25.

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