FX.co ★ Elliott wave analysis of GBP/JPY for December 9, 2020

GBP/JPY broke through short-term support at 138.97 indicating more downside pressure towards solid support near 137.17 in the days to come. Uncertainty in regards to the Brexit negotiations is pushing the GBP lower and will continue to do so until we have an agreement or not.

Our long-term count remain GBP-positive and calls for more upside progress towards 147.72. It's however worth to point out, that a break below support at 136.69 will severly damage the bullish count.

R3: 140.21

R2: 139.83

R1: 139.55

Pivot: 139.25

S1: 138.98

S2: 138.43

S3: 137.89

Trading recommendation:

We sold GBP at 138.95 and we have placed our stop at 140.71. Upon a break below 138.45 we will move our stop lower to 139.95. We will take profit at 137.25.