FX.co ★ Elliott wave analysis of GBP/JPY for October 19, 2020

GBPJPY dipped to a low of 135.38 before starting to move higher again. We are looking for a solid break above minor resistance at 136.4. It will indicate that red wave ii has been completed and red wave iii is in motion for a break above the former peak at 147.72. The next obstacle is seen at 137.33 and 137.87

Support is now seen at 135.86 which we expect to protect the downside for the break above 136.41.

R3: 136.90

R2: 136.65

R1: 136.41

Pivot: 136.20

S1: 136.04

S2: 135.86

S3: 135.57

Trading recommendation:

We bought GBP at 135.45 and we have placed our stop at 135.35.