By Orbex
In the long term, the GBPJPY currency pair is most likely moving within a cycle impulse. Now the third part of this impulse, wave III is under development.
The second half of the powerful impulse wave III is visible in the 1H timeframe. And the decline in the bearish correction of the primary degree may end soon. This correction takes the form of an intermediate triple zigzag.
Most likely, the price will fall to the previous low of 148.89. This was marked by the minor sub-wave W, and then we can expect a price increase in the primary wave ⑤. In turn, this wave may take the form of either an impulse or an ending diagonal.
The entire primary wave ⑤ could complete its pattern near 167.74. At that level, it will be at 61.8% of wave ③.
Free Reports:
Sign Up for Our Stock Market Newsletter – Get updated on News, Charts & Rankings of Public Companies when you join our Stocks Newsletter
Get our Weekly Commitment of Traders Reports - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.
An alternative scenario suggests that the formation of the primary correction ④ may continue for a longer time than in the first variant. It may take the form of an intermediate double zigzag (W)-(X)-(Y).
The last actionary wave (Y) of the intermediate degree can take the form of a double combination and consist of minor sub-waves W-X-Y.
In this scenario, market participants may observe a bearish price movement within the final minor wave Y to the level of 142.76.
At that level, wave ④ will be at 61.8% along the Fibonacci lines of impulse ③.
Article by Orbex
Orbex is a fully licensed broker that was established in 2011. Founded with a mission to serve its traders responsibly and provides traders with access to the world’s largest and most liquid financial markets. www.orbex.com
- COT Metals Charts: Speculator Changes led lower by Gold & Platinum Nov 17, 2024
- COT Bonds Charts: Large Speculator bets led by 2-Year & Ultra Treasury Bonds Nov 17, 2024
- COT Soft Commodities Charts: Large Speculator bets led by Corn & Soybean Oil Nov 16, 2024
- COT Stock Market Charts: Speculator Bets led by MSCI EAFE & VIX Nov 16, 2024
- The Dollar Index strengthened on Powell’s comments. The Bank of Mexico cut the rate to 10.25% Nov 15, 2024
- EURUSD Faces Decline as Fed Signals Firm Stance Nov 15, 2024
- Gold Falls for the Fifth Consecutive Trading Session Nov 14, 2024
- Profit-taking is observed on stock indices. The data on wages in Australia haven’t met expectations Nov 13, 2024
- USD/JPY at a Three-Month Peak: No One Opposes the US Dollar Nov 13, 2024
- Can Chinese Tech earnings offer relief for Chinese stock indexes? Nov 13, 2024
