FX.co ★ GBP/JPY Elliott wave count and Fibonacci levels, July 19, 2010

According to wave count this currency pair is now developing a corrective wave to the longterm uptrend 131.17-135.80. The targets of the correction are Fibonacci retracement points of this wave - 131.17-135.80. There are more targets, which are Fibonacci expansions off 135.80-134.22-135.58, 135.58-134.02-134.84.

Nearest price targets below the current level:

- 132.32-26 = confluence area of expanded objective point (XOP) and .764 retracement, reached by the price already
- 131.44 = super expanded objective point (SXOP)
- 130.76 = SXOP

In case the price resumes its movement to the upside the resistances will be Fibonacci retracement points of 3 waves: 134.84-131.94, 135.58-131.94, 135.80-131.94.

Nearest price targets above the current level:

- 133.05 = .382 ret
- 133.33-39-41 = confluence area of .382, .50, and .382 retracements
- 133.73-76-87 = confluence area of .618, and .50's retracements
- etc., see the image.

Overbought/Oversold

The Detrended Oscillator is in the red, showing that it is not the time to follow the intermediate downtrend. In case you trade intraday, the resistances to watch are nearest Fib-nodes at 133.05 and 133.33-39.