FX.co ★ Elliott wave analysis of GBP/JPY for October 26, 2020

We continue to expecte short-term key support at 136.26 will be able to protect the downside for a new rally above 137.33 and more importantly a break above resistance at 137.83 for a rally towards the former peak at 142.72 and ultimately above here too.

A break below 136.26 will call for a re-test of support at 135.59 and likely even lower towards 135.07.

R3: 137.33

R2: 136.85

R1: 136.77

Pivot: 136.26

S1: 135.92

S2: 135.59

S3: 135.37

Trading recommendation:

We are long GBP from 135.45 with our stop at 136.25