E Interesting Pattern On GBP/JPY Suggest More Upside

GBP/JPY is in a strong recovery away from October 9 low, however currently unfolding a sideways correction within an uptrend, which can be a triangle in the making. Once five needed sub-waves fully show up in wave 4, that is when a new leg higher as wave 5 may follow.

GBP/JPY, 4h

A Triangle is a common 5-wave pattern labeled A-B-C-D-E that moves counter-trend and is corrective in nature. Triangles move within two channel lines drawn from waves A to C, and from waves B to D. A Triangle is either contracting or expanding depending on whether the channel lines are converging or expanding. Triangles are overlapping five wave affairs that subdivide 3-3-3-3-3.

Triangles can occur in wave 4, wave B, wave X position or in some very rare cases also in wave Y of a combination.

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