GBP/JPY - Relief Rally
Updated
GBP/JPY -0.27% has been selling off from the 15th of December 2016 after completing the C point of this bullish 5-0 , it completed in between the 1.618 and 2.24 extension.
The measurements for a valid 5-0 pattern are detailed below.
B: 1.13 - 1.618
C: 1.618 - 2.24
D: 0.50
Since then I have been waiting for the C to D move to complete and it has finally happened, I predicted this almost one month ago here on TradingView (as shown below).
Price met the 0.5 retracement at 136.500 to complete the D point upon market open this week, right inside a crucial support zone . This has potentially created a higher low in the market, thus providing an excellent opportunity to buy low.
To validate the change in market direction I'm expecting price to increase following tomorrow's speech on Brexit with Prime Minister Theresa May (17th of January 2017).
There is a bearish consensus around Theresa May's speech, those looking to punish Sterling further could be disappointed.
The measurements for a valid 5-0 pattern are detailed below.
B: 1.13 - 1.618
C: 1.618 - 2.24
D: 0.50
Since then I have been waiting for the C to D move to complete and it has finally happened, I predicted this almost one month ago here on TradingView (as shown below).
Price met the 0.5 retracement at 136.500 to complete the D point upon market open this week, right inside a crucial support zone . This has potentially created a higher low in the market, thus providing an excellent opportunity to buy low.
To validate the change in market direction I'm expecting price to increase following tomorrow's speech on Brexit with Prime Minister Theresa May (17th of January 2017).
There is a bearish consensus around Theresa May's speech, those looking to punish Sterling further could be disappointed.
Note
The market reacted to Theresa May's speech exactly as expected, I hope you all got in on the move up.
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