GBPJPY is another pair that has given us nice trading opportunity lately . The pair has been showing impulsive bullish sequences in the cycle from the March 2020 low (124.27). Recently it made clear 3 waves pull back and found buyers as we were expecting . Pull back unfolded as Elliott Wave Double Three Pattern. In this technical blog we’re going to take a quick look at the charts of GBPJPY published in members area of the website and explain the Elliott Wave structure and trading strategy.
Before we take a look at the real market example, let’s explain Elliott Wave Double Three pattern.
Elliott Wave Double Three Pattern
Double three is the common pattern in the market , also known as 7 swing structure. It’s a reliable pattern which is giving us good trading entries with clearly defined invalidation levels.
The picture below presents what Elliott Wave Double Three pattern looks like. It has (W),(X),(Y) labeling and 3,3,3 inner structure, which means all of these 3 legs are corrective sequences. Each (W) and (Y) are made of 3 swings , they’re having A,B,C structure in lower degree, or alternatively they can have W,X,Y labeling.
GBPJPY Elliott Wave 4 Hour Chart 7.15.2021
Current view suggests the pair is doing ((4)) black correction that is unfolding as Elliott Wave Double Three Pattern with (W)(X)(Y) inner labeling. First leg (A) is showing corrective sequences ABC red. Then we got 3 waves bounce in (X) and finally doing (Y) blue that also should have corrective sequences. Pull back looks incomplete at this stage. Suggesting we should see another leg down toward extreme zone : 150.39 -147.71 area. As the main trend is bullish we expect buyers to appear at the blue box for 3 waves bounce at least. Once bounce reaches 50 Fibs against the (X) blue high, we will make long position risk free ( put SL at BE). Invalidation for the trade would be break below 1.618 fibs extension: 147.71
As our members know, Blue Boxes are no enemy areas , giving us 85% chance to get a bounce.
You can learn more about Elliott Wave Double Three Patterns at our Free Elliott Wave Educational Web Page.
GBPJPY Elliott Wave 4 Hour Chart 7.31.2021
Buyers appeared at the blue box and we are getting good reaction from there. The rally from the blue box reached 50 fibs against the (X) connector, as a result members who took long positions are enjoying profits in a risk free positions. As far as the price stays above current low : 148.43, we can consider ((4)) pull back done as Elliott Wave Double Three Pattern. Keep in mind that market is dynamic and presented view could have changed in the mean time. You can check most recent charts in the membership area of the site. Best instruments to trade are those having incomplete bullish or bearish swings sequences. We put them in Sequence Report and best among them are shown in the Live Trading Room.
Elliott Wave Forecast