Elliott wave analysis of GBP/JPY for August 13, 2020

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GBP/JPY is moving higher slowly. Since resistance is at 139.18, we should see that bulls resume buying GBP, but no, they are likely to buy, but in a slow-motion pace. However, we expect the 140.35 taget to be tested soon to complete blue wave iii and set the stage for a sideways consolidation in blue wave iv towards 138.55 and maybe even closer to 137.92 before pushing higher again.

Support is now seen at 138.83 which ideally will be able to protect the downside for the expected test of the 140.35 target.

R3: 140.35

R2: 140.00

R1: 139.55

Pivot: 139.11

S1: 138.83

S2: 138.55

S3: 137.92

Trading recommendation:

We are long on GBP from 135.43 and we will lift our stop higher to 138.75. We will take profit on 50% of our long position at 140.25

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