Pound/yen has confirmed subwave C (colored royal blue) within daily wave C (colored light green). The long- and med term trends coincide, all the waves are impulsive. Now we calculate the targets below the current levels using Fibonacci expansions off the larger daily A-B waves 137.75-128.77-133.59, A-B subwaves 133.59-127.89-130.30. Within the subwave C we also have a set of minor waves A-B-C, and A-B give their projections 130.30-128.55-130.90, plus even smaller A-B (colored orange red) 130.09-128.03-128.75.
Supports:
- 127.48 = contracted objective point (COP)
- 127.26 = expanded objective point (XOP)
- 126.78-69 = confluence area of COP and objective point (OP)
- 125.51-41 = confluence area of super expanded objective point (SXOP) and XOP
In case the price reverses for a correction the nearest resistances will fe Fibonacci retracements of 130.09-127.62.
Resistances:
- 128.56 = .382 retracement
- 128.86 = .50 ret
- 129.15 = .618 ret
Overbought/Oversold
The Detrended Oscillator is in the oversold area. Assuming that the prevailing trend is down it's advisable to look for topping signals near the Fibonacci resistances to enter short. The nearest overbought (another resistance) is 40-60 pips above the current price.