A week ago, on October 22nd, we published an analysis, called “GBP JPY to regain positive bias”, saying that we expect the uptrend to resume soon. We thought so, because the 15-min chart of GBPJPY was showing a perfect impulse to the upside, followed by a correction and according to the Elliott Wave Principle, prices should be expected to go in the direction of the impulsive sequence. On the chart below you can see how GBPJPY looked like 7 days ago.
As visible, we assumed that the reversal would occur in the price zone between 171 and 170, where wave (2/B) was supposed to end. The next chart shows GBPJPY as it is today.
Soon after the forecast was published, prices began recovering, climbing up from 171 to as high as 174.70, which is a 370-pip move so far. Perhaps the uptrend still has room to grow, which means that the trailing stop technique could be applied, in order to protect open profits, while staying in the position.
