GBP/JPY - Calling a top

❗ **Trade Plan (Live): I sold GBP/JPY at 188.90**
GBP Basket - lower-than-expected inflation data has resulted in sterling (GBP) moving to the downside. The basket highlights the completion of a bearish Gartley formation.
JPY Basket - moving lower within a Crab formation. This will be completed at 6,418. We are seeing a correction to the upside close to the 161.8% extension level of 6,530. Elliott Wave enthusiasts would see this as a fourth-wave correction before sellers return.
Correlation studies highlight the potential for a top in GBP/JPY. With both single currencies moving in the same direction (bearish) intraday trading should be mixed and volatile.
GBP/JPY - the weekly chart highlights the breakout of an ending wedge formation. This pattern has a measured move target of 158.27. Using projection analysis from our bespoke support level at 178.43, we have a 261.8% extension level at 157.95.
The daily chart highlights a Wyckoff distribution phase. The break to the upside is analyzed as an upthrust failure. We can also note the completion of a bullish Elliott wave count (5 waves).
The one-hour chart highlights the completion of another five-wave sequence.
I sold GBP/JPY at 188.90
SL: 190.35
TP1: 178.50
Risk/Reward Ratio of 7.17R
#tradeplan #GBP/JPY