Guest Commentary: GBP/JPY Immediate Upside Seen Limited - Pullback Expected
Pair is completing a cycle from 8.28.2013 (150.40) low which would also complete a cycle from 8.7.2013 and 7 swings higher from 6.13.2013 lows and leave the pair vulnerable to a corrective 3 wave pull back. As that pull back proves corrective and holds between 38.2 - 50 fib retracements of the move higher from 8.7.2013 (147.58) , it should continue higher again in 3 waves to complete an Ending Diagonal from 6.13.2013.
If that pull back proves to be impulsive, then pair would trade lower toward 144.50 - 146.80 to complete a FLAT correction before trading higher again. Short-term pair would either make a new high to 157.00 or is in a FLAT correction from 156.43 peak.
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