Forex Trading Library

GBPJPY: ZigZag Pattern ABC Likely To Complete Global Triple ZigZag.

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Chart of GBPJPY

GBPJPY suggests the construction of the final part of a large correction pattern – a triple zigzag Ⓦ-Ⓧ-Ⓨ-Ⓧ-Ⓩ. That is, an actionary wave Ⓩ is formed. It seems to take the form of an intermediate double zigzag (W)-(X)-(Y).

The intermediate wave (W) looks fully completed at the time of writing. And this makes the next few trading days interesting, since a bullish trend is expected within the final actionary sub-wave (Y), which may take a zigzag shape A-B-C.

Most likely, the bulls are aiming for 176.24. At that level, wave (Y) will be at 76.4% of previous actionary wave (W).

Chart of GBPJPY

In an alternative scenario, it is assumed that a large intervening wave x is currently under development. It may end in the form of a bearish triple zigzag, for the construction of which a final sub-wave Ⓩ is needed.

The present structure of the primary wave Ⓩ suggests an intermediate double zigzag (W)-(X)-(Y). The first two zigzag sub-waves (W) and (X) are already finished. Market participants can expect a fall in the sub-wave (Y). With its last impulse sub-wave C, the price may fall to the level of 148.17.

At the specified level, wave Ⓩ will be at 123.6% of actionary wave Ⓨ.

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