GBP/JPY spiked to a high 1.4773 as the Conservative Party won the election and Brexit finally seems to be finalized. The spike to 1.4773 completed red wave v and black wave iii and a correction in black wave iv are now unfolding. The first part of this correction indicates that a minor five wave structure is in place and a zig-zag correction is developing. A wave of this zig-zag is expected to complete in the 1.4136 - 1.4142 area for setting the stage for a rally in wave b towards resistance in the 1.4470 -1.4548 zone before wave c takes over for a second decline towards 1.3982 to complete the zig-zag correction from 1.4773.
R3: 1.4444
R2: 1.4381
R1: 1.4346
Pivot: 1.4304
S1: 1.4230
S2: 1.4172
S3: 1.4142
Trading recommendation:
We took profit on the final 50% at 1.4445 and booked another nice 433 pips and is now waiting for an opportunity to re-enter this market. We will buy 50% at 1.4150 for a corrective ride towards the 1.4470 - 1.4548 target zone.
The material has been provided by InstaForex Company - www.instaforex.com