FX.co ★ GBP/JPY Elliott wave count and Fibonacci levels, July 29, 2010

According to wave count this currency pair is developing a weekly wave up, which is labeled C (colored silver on the chart). The strategic targets of this longterm wave are Fibonacci expansions off 130.40-136.00-130.80.

The strategic targets are:

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

If we look at smaller timeframes, we'll see corrective wave B that is going against the intermediate uptrend (colored mangeta on the chart). The calculations for this wave are simple - Fibonacci retracement points of waves 134.39-137.53 and 130.80-137.53.

Targets of the corrective wave:

- 135.96 = .50 retracement, has been reached already by the price
- 135.59 = .618 ret
- 134.96 = .382 ret
- 134.14 = .50 ret
- 133.37 = .618 ret

Overbought/Oversold

The Detrended Oscillator is now at the zero level. The nearest oversold area is 40-60 pips down which corresponds to 135.59 - the Fib-node .618 of wave 134.39-137.53. A long entry is favored against this level in case of a reversal signal.