FX.co ★ Elliott wave analysis of GBP/JPY for November 7 - 2019

Today we would like to show an alternate count we are looking for in the red wave iv. The correction in red wave iv is close to completion. It will likely complete above 138.87 for a strong rally to at least 144.58 in red wave v. This will likely complete wave iii and set the stage for another sideways correction in wave iv.

As wave ii was a deep zig-zag correction, we should expect a shallow sideways correction in wave iv, but it could be later.

In the short-term, a break above minor resistance at 140.12 will indicate the completion of red wave iv and the development of red wave v towards 144.58.

R3: 140.74

R2: 140.57

R1: 140.12

Pivot: 139.91

S1: 139.58

S2: 139.27

S3: 138.87

Trading recommendation:

We will buy GBP at 139.45 or upon a break above 140.12