FX.co ★ GBP/JPY Elliott wave count and Fibonacci levels, July 30, 2010

According to wave count this currency pair is developing corrective wave B of the intermediate uptrend (colored magenta on the chart). The longterm trend is also up - weekly wave C is developing (colored silver). The strategic targets of the weekly wave are Fibonacci expansions off 130.40-136.00-130.80:

- 136.40 = objective point (OP), reached already, may be a minor indication of reversal
- 139.86 = expanded objective point (XOP)

The targets of the corrective intermediate wave are Fibonacci retracement points of 130.80-137.53 and expansions off 137.53-135.86-136.87, 136.87-134.96-135.83.

Here are the nearest supports:

- 134.65 = contracted objective point (COP), reached already, may be an indication of reversal, especially considering the Detrended Oscillator's readings
- 134.17-133.92 = confluence area of .50 retracement, XOP, and OP
- 133.37 = .618 retracement
- 132.74 = XOP
- and so on, see the image

Overbought/Oversold

The Detrended Oscillator is in the oversold area. Assuming that the major trend is up, it's good to wait for a true reversal up against one of the Fibonacci levels, listed above.