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The current GBPJPY structure shows a bearish A-B-C correction that formed following an intermediate-degree impulse wave (A). The minor degree formation started off at the 147.95, where wave (A) ended and is part of the wave (B).
With the intermediate wave (B) already completed, we can expect an impulsive move to the upside.
The scenario we are looking indicates that minor waves 1 and 2 of the impulsive rally are already formed. This suggests that the pair could shoot towards the 145.02, which is the top of the triple zigzag completed in wave B.
The structure is indicative of an alternative scenario that suggests that wave (B) is still in motion.
We can then expect a short-lived correction into the minute wave four, which consists of sub-waves (a)-(b)-(c).
Following the successful correction near 137.77 at the 78.6% Fibonacci retracement of wave (a), we could see the prices of the currency pair weakening.
The drop could take us down to below the 132.51 low, even for a false break.
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