Elliott wave analysis of GBP/JPY for November 18, 2020

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Nothing is happening here... GBP/JPY is trading within a very narrow band between 137.71 - 138.30. This is building up energy and once a break out of this range is seen, we can expect to see a quick run. We expect the upside to be broken for a quick run towards 138.87 and the former peak at 142.72. That said, we have to be aware of the risk that the downside will give away a cause a spike lower to the uptrend-line near 136.25. This is clearly not our preferred scenario, but at this point we can't exclude the possibility.

R3: 140.17

R2: 139.06

R1: 138.51

Pivot: 138.30

S1: 137.93

S2: 137.71

S3: 137.51

Trading recommendation:

We are long GBP from 135.45 with our stop placed at 137.45

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