Potential sell off on GBPJPY

2022年8月11日

Over the past couple of weeks price action has given us very strong bullish momentum, however due to the following technical factors we could start to see a reversal in the medium term. As you can see price has started to develop a new bullish wave in our Elliot wave pattern and has ended the previous bearish advance. Price could therefore start to rally all the way towards the 167.853 level. However, if price rejects this key level of market structure price could fall and retest our trendline support, giving us a potential third touch and thus leading to a bearish breakout. This could see price fall to as low as 124.709. However, if the bulls manage to break past and hold the 167.853 level as support this could lead to more bullish pressure invalidating our short and wave patterns. (I'm still a beginner when it comes to wave counting so any advice or critiques would be appreciated)