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The current GBPJPY structure shows an intermediate corrective wave (B) that consists of minor sub-waves A-B-C.
Following (B), the market started moving in wave (C), which is likely to end the correction in the minor degree at fresh highs.
The minor 5-wave impulse pattern in wave 1 is now nearing an end. The end of the minute degree wave substructure could be completed near 135, as this makes a good round resistance and fits the pattern as a last 5th wave too.
Since we haven’t seen a proper elongated correction in any of the fourth waves, however, we consider an alternative scenario very likely too.
The end of the intermediate corrective wave (B) is not completed in this alternative scenario, respecting the rule of alternation.
Should this structure prevail, we can expect a decline in the final leg of minor wave C.
This would ...
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