By Orbex
The GBPJPY currency pair is moving within a cycle impulse. Right now, the third part of this impulse is under development.
The second half of the powerful impulse wave III is visible on the 1H timeframe. At the end of December, the correction wave ④ of the primary degree ended. This correction took the form of an intermediate triple zigzag.
Since then, there was a rise in the price in the primary wave ⑤, which takes the form of an intermediate 5-wave impulse (1)-(2)-(3)-(4)-(5).
The entire primary wave ⑤ can complete its pattern near 163.55. At that level, it will be at 61.8% of wave ③.
Free Reports:
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.
Download Our Metatrader 4 Indicators – Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter
Let’s consider an alternative scenario, where the primary wave ⑤ is not an impulse, but an ending diagonal consisting of intermediate sub-waves (1)-(2)-(3)-(4)-(5).
There is a high probability that the price will rise in the sub-wave (5) to the price level of 158.32, which marked the primary impulse ③ (this is not visible on the current chart).
After the completion of cycle impulse III, prices could drop in the development of a cycle correction IV. It is possible that wave IV will be at 38.2% of impulse III.
The correction could complete its pattern near 147.32.
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 Bonds Charts: Speculator Bets led by SOFR 3-Months & 10-Year Bonds Dec 21, 2024
- COT Metals Charts: Speculator Bets led lower by Gold, Copper & Palladium Dec 21, 2024
- COT Soft Commodities Charts: Speculator Bets led by Live Cattle, Lean Hogs & Coffee Dec 21, 2024
- COT Stock Market Charts: Speculator Bets led by S&P500 & Russell-2000 Dec 21, 2024
- Riksbank and Banxico cut interest rates by 0.25%. BoE, Norges Bank, and PBoC left rates unchanged Dec 20, 2024
- Brent Oil Under Pressure Again: USD and China in Focus Dec 20, 2024
- Market round-up: BoE & BoJ hold, Fed delivers ‘hawkish’ cut Dec 19, 2024
- NZD/USD at a New Low: The Problem is the US Dollar and Local GDP Dec 19, 2024
- The Dow Jones has fallen for 9 consecutive trading sessions. Inflationary pressures are easing in Canada. Dec 18, 2024
- Gold Holds Steady as Investors Await Federal Reserve’s Rate Decision Dec 18, 2024