GBP/JPY Weekly Wave Analysis
2012-07-02 15:12:37 (читать в оригинале)
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GBP/JPY Elliott Wave
Last week the GBP/JPY pair was trading in a downward move developing impulsive 1 wave (coloured green) of the bigger 5 wave (coloured green). During the Friday Asian and early European sessions we could observe ascending movement towards the 124.92 level. We can consider this move as the end of the A wave (coloured blue) of the bigger 2 wave (coloured green). During the second half of the EU session this exotic pair started pushing lower and price reached 123.63 level (end of B wave). Therefore, during the New York session we could observe continuation of the bullish mood with the price reaching 125.42 level. We can consider this move as the end of the C wave of the bigger 2 wave (coloured green). Today the GBP/JPY pair starts trading in a downward move and we can expect to see price under 121.00 level this week. In accordance with our wave rules and taking into account that the wave 3 retraces 161.8% of the wave 1, we can define the potential targets with Fibonacci extensions (125.78-122.81-125.43) with Take Profit 1 at 122.58 (100% of wave 1) and Take Profit 2 at 120.79 (161.8% of wave 1). Resistance at 125.75 can be used as a Stop Loss point. Also it is necessary to monitor the UK Manufacturing PMI data that can change the rate of the pair.
Support and Resistance Levels
(S3) 121.81 (S2) 122.88 (S1) 123.54 (PP) 124.60 (R1) 125.67 (R2) 126.33 (R3) 127.39
Trading Forecast
Proceeding from Elliott Wave Rules this week, the trend is expected to begin the downward movement. That is why short positions at level 124.00 with Stop Loss at 125.75, Take Profit 1 at 122.58, and Take Profit 2 at 120.79 are recommended.
The material has been provided by Instaforex Company - instaforex.com
