FX.co ★ GBP/JPY Elliott wave count and Fibonacci levels, July 13, 2010

This currency pair is now moving within a weekly wave up. This wave will be cancelled in case 131.17 is broken, since this level is the base of the wave. The intermediate trend is down and is viewed as a correction to the weekly uptrend. The targets of the corrective wave down are Fibonacci retracement points of 131.17-134.63 and expansions off 134.63-132.54-133.74 and 133.74-132.66-133.62.

Nearest price targets below the current level:

- 132.54-59-45 = confluence area of objective point (OP), .618 retracement and contracted objective point (COP)
- 131.99 = .764 ret
- 131.87 = expanded objective point (XOP)
- 131.65 = OP

In case the price keeps advancing the nearest resistances will be Fib retracement points of 134.63-132.54 and expansions off 131.17-134.63-132.54.

Immediate resistances:

- 133.83 = .618 ret
- 134.68 = COP
- 136.00 = OP

Overbought/Oversold

The Detrended Oscillator is heading into the oversold area. One could combine it with a Fib level not far, which is 132.54-45, to search for bottoming signals and to enter long.