GBPJPY trading near the high so it appears that the recent pullback down to 139.00 was the fourth wave flat correction, meaning that the current leg up can be the fifth wave. We know that after every five waves, the market may turn south for a three-wave set-back so we believe that there will be a deeper retracement before an even stronger bullish leg may show up.
Cable is not moving much but notice that the first leg down from above 1.2900 was in three legs, so no matter how we look at the current structure, we know it’s just a temporary pause within the uptrend. That said, we think that eventually the pair will be above 1.2900. Supports are at 1.2770 then at 1.2750.
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