GBPJPY Impulse Or Ending Diagonal?

GBPJPY

The GBPJPY currency pair is most likely moving within the cycle impulse, with wave III under development.

We can assume that the correction wave ④ of the primary degree ended at the end of December. This correction took the form of an intermediate triple zigzag.

Since then, we have observed a rise in the price in the primary wave ⑤. In turn, this takes the form of an intermediate 5-wave impulse (1)-(2)-(3)-(4)-(5).

The entire primary wave ⑤ can complete its pattern near 163.52. At that level, it will be at 61.8% of wave ③.

GBPJPY

Alternatively, the primary wave ⑤ is not an impulse, but an ending diagonal in which an intermediate correction wave (4) is under construction.

Perhaps wave (4) will be a triple W-X-Y-X-Z zigzag of the minor degree, as shown in the chart. In the near future, prices could lower in the minor sub-waves Y-X-Z to the level of 152.00.

After reaching the specified price level, the price is likely to increase within the final intermediate wave (5) to the previous maximum of 158.25.

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About the Author
“John Benjamin Resident Analyst at Orbex. John has over 8 years of experience specializing in the currency markets, tracking the macroeconomic and geopolitical developments shaping the financial markets. John applies a mix of fundamental and technical analysis and has a special interest in inter-market analysis and global politics.” [space height="10"] At Orbex, we are dedicated to serving our clients responsibly with the latest innovations in forex tools and resources to assist you in trading. Please Director at Visit our site for more details.

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