FX.co ★ GBP/JPY Elliott wave count and Fibonacci levels, July 21, 2010

This currency pair has just ended the mid term downside wave 135.80-131.42 as 133.42 has been broken to the upside. The latter level is the base of subwave 5. At the moment the nearest resistances are Fibonacci retracement points of 135.80-131.42.

Price targets above the current level:

- 133.61 = .50 retracement, reached already
- 134.13 = .618 retracement
- 134.77 = .764 retracement

In case the price resumes its movement to the downside the nearest supports will be Fibonacci retracement points of 131.42-133.71.

Price targets below the current level:

- 132.29 = .618 ret
- 131.96 = .764 ret

So far we haven't any Fibonacci expansions, since there are no impulses and corresponding corrective waves to make projections from.

Overbought/Oversold

The Detrended Oscillator is near its zero level. As soon as the major wave is up, we would be better off if we search for a long entry against a Fib support in the vicinity of 132.29-131.96 - this area corresponds to oversold readings of the Detrended and represents 2 Fib retracements.