FX.co ★ GBP/JPY Elliott wave count and Fibonacci levels, July 26, 2010

This currency pair is now developing an intermediate uptrend. All the waves and subwaves of the trend are up (C). From the long-term perspective the price is trading in the range limited by 136.45-130.40. Weekly wave C (colored plum on the chart) has precisely reached its objective point (COP) - 130.97.

The targets above the current price level are Fibonacci expansions off 130.80-133.29-132.39, 132.39-134.88-133.86:

- 135.40 = contracted objective point (COP), reached
- 136.35-42 = confluence area of OP and expanded objective point (XOP)
- 137.89 = XOP
- 138.91 = super expanded objective point (SXOP)

In case the price reverses to the downside the immediate supports are Fib retracement points of waves up starting from 132.39 and 130.80.

Overbought/Oversold

The Detrended Oscillator is now at the zero level. However the oversold area does not necessarily mean a buy, since the movement up was very sharp. It's better to wait for a deep retracement to a significant Fib-support (134.38, 134.02, 133.66).