FX.co ★ Elliott wave analysis of GBP/JPY for November 20, 2019

The correction in blue wave ii need more time to unfold and has become deeper than expected, but non-the-less it just remains a correction and it should just be a matter of time before blue wave iii takes hold for the next impulsive rally towards at least 143.30 as red wave v moves closer to its ideal target at 144.58.

Short-term a break above minor resistance at 140.37 will be the first good indication that blue wave ii has completed and blue wave iii is developing, while a break above resistance at 140.94 confirms blue wave iii is well under way.

R3: 141.58

R2: 140.94

R1: 140.54

Pivot: 140.37

S1: 140.08

S2: 139.84

S3: 139.34

Trading recommendation:

We are long GBP from 140.12 with our stop placed at 139.30. If you are not long GBP yet, then buy upon a break above 140.37 and use the same stop at 139.30