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Elliott wave analysis of GBP/JPY for May 6, 2020

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There was no time for even the slightest correction and the key support at 131.88 is being tested. We don't see a direct break below this key-support, but rather a correction to 133.18 and possibly even closer to 133.64 before renewed downside pressure through the key support at 131.88 for a decline to below 123.99 to complete the long-term decline from 147.95.

Short-term a break above minor resistance at 132.69 will confirm the expected mini rally to 133.18 and possibly 133.64 before lower again.

R3: 133.64

R2: 133.18

R1: 132.69

Pivot: 131.88

S1: 131.10

S2: 130.50

S3: 130.05

Trading recommendation

We will sell GBP at 133.50 or upon a break below 131.88

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