FX.co ★ GBP/JPY Elliott wave count and Fibonacci levels, August 5, 2010

Wave count on larger timeframes shows that this currency pair is now forming wave C of weekly degree (colored silver on the chart), its strategic targets are Fibonacci expansions points off waves A and B - 130.40-136.00-130.80:

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

On smaller timeframes we have a set of three waves ABC where wave C is still developing (colored magenta). And withing the "magenta" wave C there's a set of 3 waves also, and potential subwave C (colored red) is developing. Therefore all the targets on smaller TF's are Fib expansions off 130.80-137.53-134.18 and 134.18-137.75-135.83:

- 138.04 = contracted objective point (COP)
- 138.34 = COP
- 139.40 = OP

If the price turns downwards the nearest supports will be Fib retracements of 135.83-137.47, 134.18-137.75, and 130.80-137.75:

- 136.46-39 = confluence area of .618 retracement and .382
- 135.94 = .50 ret
- 135.54 = .618 ret
- 135.10 = .382 ret
- and so on, see the img.

Overbought/Oversold

The Detrended Oscillator is in the oversold area. Assuming that the longer term trend is up, it's good to look for a reversal signal, since the market is near a Fibonacci support at the moment.