FX.co ★ GBP/JPY Elliott wave count and Fibonacci levels, August 2, 2010

According to wave count this currency pair has ended potential corrective wave B (colored magenta on the chart). The longterm trend is still 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. More specific targets are Fibonacci expansion points off waves of smaller degree - 130.80-137.53-134.18:

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

The targets of the corrective intermediate wave are Fibonacci retracement points of 130.80-137.53.

Here are the nearest supports:

- 134.17-133.92 = confluence area of .50 retracement, XOP, and OP - the price reverced within 1 pip
- 133.37 = .618 retracement
- and so on, see the image

Overbought/Oversold

The Detrended Oscillator is moving into the overbought area. However, assuming that the major trend is up it is better to wait for a tradable retracement some 50-60 pips below - according to the oscillator.