GBP/JPY – 142.45

Original strategy:

Exit short entered at 142.00

- advertisement -

Position: –
Target: –
Stop: –

New strategy :

Buy at 141.60, Target: 143.60, Stop: 141.00

Position: –
Target:  –

As the British pound has surged again after staging a strong rebound from 139.35 (last week’s low), suggesting recent decline has ended there and consolidation with mild upside bias is seen for this move to bring at least a strong retracement of recent decline, hence further gain to 143.20 would be seen, however, near term overbought condition should limit upside to 143.50-60 and reckon 144.00-10 would hold from here. 

In view of this, would be prudent to turn long on pullback as 141.50-60 should limit downside. Below previous resistance at 141.40 would defer and risk weakness to 141.00 but reckon downside would be limited to 140.40-45, price should stay well above support at 140.05 and bring another rebound later. 

Our preferred count is that larger degree wave V with circle is unfolding from 251.12 with wave (I) 219.34, (II): 241.38 and wave (III) is subdivided into 1: 192.60, 2: 215.89 (23 Jul 2008) and wave 3 ended at 118.87 earlier in 2009. The correction from there to 162.60 is wave 4 which itself is a double three and is labeled as first a-b-c ended at 151.53, followed by wave x at 139.03, 2nd a ended at 162.60, 2nd b at 146.75 and 2nd c leg of wave 4 ended at 163.00. Therefore, the decline from 163.00 to 116.85 is now treated as wave 5 which also marked the end of larger degree wave (III), hence wave (IV) major correction has commenced for retracement of the wave (III) from 241.38 and upside target at 183.95-00 (50% Fibonacci retracement of the wave (II) from 241.38) had been met, a drop below 160.00 would suggest wave (IV) has ended at 195.85, bring decline in wave (V) for initial weakness to 130 (already met) and 120.


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.