Descending correction. GBP/JPY wave analysis

Analysis for December 17^th, 2014

In our previous review, “The start of the trend reversal. Wave analysis of GBP/LPY for 09.12.2014”, we discussed one of the possible scenario how the price may finish an ascending wave [v] of 5 of (1) and start a descending correction (2).



If the assumption about the completion of an ascending impulse (1) is correct, then the pair is expected to start a large descending correction (2), maybe in the form of zigzag.



Probably, the market has started forming a descending correction (2), the form of which isn’t quite clear yet. Possibly, at the moment, the price is finishing a descending impulse [i] of A of (2). If this assumption is correct, then after an ascending correction [ii] of A of (2), the downtrend may continue inside impulse [iii] of A of (2).

However, at the same time one should remember that any possible scenario is subjective and the market may move in a completely different direction.

RoboForex Analytical Department