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

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GBP/JPY has not yet broken below minor support at 136.77 to confirm that the rally from 133.08 has been a leading diagonal. Taking into consideration that this is the case for EUR/JPY the odds for GBP/JPY to produce a similar pattern is rather high. Therefore, GBP/JPY could break below minor support at 136.77 as red wave ii is moving towards the 38.2% corrective target ar 136.04 which is close to the low of red wave iv/ of one lessor degree at 135.78. So, red wave ii may hit 135.78 - 136.04.

Once red wave ii is complete, a new rally to 147.72 and above is expected.

R3: 138.36

R2: 137.87

R1: 137.68

Pivot: 137.42

S1: 137.19

S2: 136.84

S3: 136.38

Trading recommendation:

We will take profit for 50% of our long GBP-position from 135.27 here at 137.47 and we will re-buy GBP at 136.15 or upon a break above 138.31.

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