According to wave count the currency pair pound/yen still has chances to continue its upside movement within daily wave C (colored royal blue on the chart). This impulse wave will be canceled in case 133.51 is broken.
If the price moves up the targets above the current level remain the same:
- 136.93 = contracted objective point (COP)
- 137.07 = expanded objective point (XOP)
- 137.26 = super expanded objective point (SXOP)
In case the price continues to the downside the targets below the current level are Fibonacci expansion points off 136.00-133.98-134.74 and retracement points of 130.40-136.00.
Price targets below the current level:
- 133.86 = .382 retracement
- 133.50 = COP
- 133.20 = .50 retracement
- 132.73 = OP
- 132.54 = .618 retracement
(Read more about EWA and Fibonacci levels)
OB/OS levels
As long as the trend is gradually changing to the downside, especially if 133.51 is broken, it would be reasonable to wait for a retracement against the downside movement until the Detrended Oscillator looks slightly overbought. Since the reading of the indicator is now oversold, it's too late to short the market.