We see gold trading in a complex correction of a higher degree, now specifically at the start of wave C) that is part of a second zig-zag. Recent minor correction in wave B) looks completed and current drop may be wave C), that can unfold a five-wave movement within the channel line and see limited downside around the previous swing ar 1246 region. Once this five wave drop of wave C) unfolds, a new recovery may follow on the commodity and ideally breach above the upper channel line.
GBPJPY may be trading in late stages of sub-wave v) of five, which means a corrective reversal may follow in the near-term. That said the pair may see limited upside later today, or maybe tomorrow and unfold a minor three wave decline towards the region of former wave iv. A broken lower channel line would be a confirmation that bulls are over and bears may come in play.
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