GBPJPY
GBPCHF
GBPAUD
Commentary – A triangle is probably unfolding in the GBPJPY as a 4th wave within the 5 wave decline from 230.33. Triangles unfold in 5 waves and the third wave of the triangle (wave c) is underway now. Expect the pair to tighten in a range before falling below 213.49 to complete wave 5. Objectives are at 210.25 and 209.56. The alternate count is a flat as wave 4 - which could test 219 (38.2% of 228.36-213.49 is at 219.17).
Strategy – Flat
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Commentary – The GBPCHF continues to decline. The decline from 2.4419 is unfolding as an impulse, which is probably wave 3 in a 5 wave bearish sequence from 2.4963. Significant chart support is at 2.1511 (November 2004 low) and a measured objective is at 2.1265 (261.8% ext. of 2.4963-2.3758/2.4419). The next bearish opportunity comes on a bounce in wave 4 (likely to end above 2.2000).
Strategy – Flat
Commentary – We wrote last week that “we are bearish and expect the decline to accelerate in wave 3 of a 5 wave bear cycle that began in August at 2.5640. Keep in mind that this pair broke a supporting trendline that dates to 1985 back in August and that the next major support level is not until below 2.0000.” The decline from 2.3887 would equal the 2.5640-2.2184 decline in percentage terms at 2.0669, which is the initial objective. We are showing this version of the daily chart to illustrate how major the support is that the pair has broken…and how much farther down the decline can extend. Want to find more opportunities like this? Then visit the Elliot wave forum.
Strategy – Bearish, move risk to 2.2739 (from 2.3603), target 2.0700