FX.co ★ GBP/JPY Elliott wave count and Fibonacci levels, July 28, 2010

According to wave count this currency pair is now developing wave C of weekly degree (colored silver on the chart). The strategic targets are Fibonacci expansions off waves A-B - 130.40-136.00-130.80:

- 136.40 = objective point (OP), reached already
- 139.86 = expanded objective point (XOP)

Minor targets of the upside movement are represented by Fibonacci expansions off waves of smaller degree (colored red on the chart) - 130.80-135.55-134.39. So the additional targets are:

- 137.33 = contracted objective point (COP)
- 139.14 = OP

As for the corrective wave which is now forming (colored yellow), its targets are Fibonacci retracements of 134.39-137.20:

- 136.13 = .382 retracement
- 135.79 = .50 ret
- 135.46 = .618 ret

Overbought/Oversold

The Detrended is now oscillating close to the zero line. Assuming that the prevailing trend is up even the slightest movement below the 0 can be a good opportunity to enter long. Even better if this level is a Fib-node, e.g. 136.13 (.382 ret) or 135.79 (.50 ret). Enter only in case of a bottoming signal.