Elliott wave analysis of GBP/JPY for November 10, 2020

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GBP/JPY has finally rallied and broken resistance at 137.87 with behavior indicating that red wave iii now is in motion for a rally towards at least 142.72 and likely a lot higher. Short-term support is now seen at 137.87 which ideally will be able to protect the downside for the next push higher to 139.82 on the way higher to 142.72. If support at 137.82 is broken, we could see the ongoing minor correction dip closer to 136.68 before taking off again.

R3: 140.59

R2: 139.82

R1: 138.94

Pivot: 138.38

S1: 137.87

S2: 137.32

S3: 136.68

Trading recommendation:

We are long GBP from 135.45 and we will move our stop higher to 136.00

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