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Elliott wave analysis of GBP/JPY for May 3, 2019

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The important resistance near 146.00 capped the upside for a dip close to support at 144.95. As long as this support is able to protect the downside, we will keep our focus on the upside and a possible break above the resistance at 145.88 confirming more moves towards 147.50 on the way higher to 151.50.

That said, we have to be aware that the failure to break above the resistance near 146.00 keeps the alternate count valid and a break below the support at 144.95 will tip the load and shift the current alternate count to be the favored count.

Under this count, renewed downside pressure will be seen for a break below 143.74 and a dip to 141.05 to complete wave 2.

R3: 145.88

R2: 145.60

R1: 145.40

Pivot: 144.95

S1: 144.72

S2: 144.02

S3: 143.74

Trading recommendation:

We remain long 50% from 144.00 with our stop placed at 144.85. We will also sell 50% the normal position at 144.85 if the price reaches it.

The material has been provided by InstaForex Company - www.instaforex.com