FX.co ★ GBP/JPY Elliott wave count and Fibonacci levels, July 20, 2010

According to wave count this currency pair is still developing a long term wave up. The break under 131.17 will end this wave. The med term is down, we have wave 5 developing (colored red on the chart). The break above 133.42 will end the whole wave down from 135.80 to 131.74.

In case the price continues moving to the downside the nearest targets will be Fibonacci expansion points off 135.80-134.22-135.58, 135.58-131.94-133.42.

Price targets below the current level:

- 131.44 = super expanded objective point (SXOP)
- 131.17 = contracted objective point (COP)
- 129.78 = objective point (OP)

In case the price resumes moving to the upside, the immediate resistances will be Fib retracement points of 133.42-131.74 Рё 135.80-131.74:

- 133.02 = .764 retracement
- 133.29 = .382 ret
- 133.77 = .50 ret
- 134.25 = .618 ret

Overbought/Oversold

The Detrended Oscillator is clearly in the overbought area. However the nearest Fib resistance is 133.02, 133.29. In case of topping signal it is safe to enter short against these resistances.