FX.co ★ Elliott wave analysis of GBP/JPY for May 3, 2021

We continue to look for more side towards at least 155.46 and possibly even higher to 159.75. That said, we do see a possibility of a larger triangle unfolding. In this case, we should see a move a little lower to 149.67 to complete red wave iv/ and set the stage for the next impulsive rally in red wave v/ towards at least 159.75.

A direct break above minor resistance at 152.41 will diminish the possibility of a triangle developing and a call for a rally directly to 155.46 and possibly even closer to 159.75.

Trading recommendation:

Buy near 149.67 if seen or buy a break above 152.41 for a rally to at least 155.46 and possibly higher.