The formation of the GBPJPY pair insinuates a large triple zigzag of the primary grade, consisting of sub-waves Ⓦ-Ⓧ-Ⓨ-Ⓧ-Ⓩ.
It is very likely that the development of the second middle wave Ⓧ has begun. This is similar to the middle double (W) – (X) – (Y) zigzag. The final middle action wave (Y), consisting of minor subwaves ABC, is currently in development.
Prices could fall in the impulse wave C to the level of 147.32, at which the main wave will be at 38.2% of wave Ⓨ.
An alternative scenario shows the primary action wave Ⓨ of a large double zigzag started. This wave looks like a simple zigzag. The last bullish wave (C), of medium grade, started and could be completed by sub-waves 1-2-3-4-5.
Wave (C) has the structure of a final diagonal, because the end of wave 4 has passed the end of wave 1.
In the coming trading days, we could expect the development of a tiny zigzag within the small wave 5, as shown on the chart.
Wave 5 may complete its growth close to 159.12. At that level, wave (C) will be at 61.8% of wave (A).
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