FX.co ★ GBP/JPY Elliott wave count and Fibonacci levels, July 27, 2010

Pound/yen is standing in the beginning of potential wave 5 of the intermediate uptrend (colored orange red on the chart). Wave 5 is confirmed in cawe 135.55 is broken to the upside, and it is cancelled if its base 134.39 is broken to the downside.

We calculate the targets of the bullish movement using Fibonacci expansions off 130.80-133.29-132.39 and 132.39-135.55-134.39.

So here are the targets above the current level:

- 136.34-42 = confluence area of contracted objective point (COP) and expanded objective point (XOP)
- 137.55 = objective point (OP)

In case the price reverses to the downside the nearest targets below the current level are Fibonacci retracements of 132.49-135.55 and 130.80-135.55^

- 134.38 = .382 retracement, the price reversed within 1 pip against it
- 134.02 = .50 ret
- 133.74-66 = confluence area of .382 and .618 ret
- 133.21-18 = confluence area of .764 and .50

Overbought/Oversold

The Detrended is now oscillating around its zero level and its swings are not that violent as before, indicating a flat market. Assuming that the prevailing trend is ub, it's reasonable to wait for a retracement to a Fib-support (listed above) and in case of a bottoming signal enter long.