FX.co ★ GBP/JPY Elliott wave count and Fibonacci levels, August 26, 2010

According to wave count on hourly timeframe this currency pair is now moving within corrective wave 4 (colored royal blue) to med term downtrend. The targets of the upside movement are Fibonacci retracement points of 134.80-128.77, 134.03-128.77, 133.31-128.77, and expansions off 128.77-130.71-129.74, 129.74-131.02-130.60.

Price targets above the current level:

- 131.58 = .618 retracement
- 131.68 = objective point (OP)
- 131.79 = .50 ret
- 131.88 = OP
- 132.02 = .618 ret
- 132.50 = .618 ret
- and so on, see the image

In case the price continues the downside movement the nearest supports will be Fibonacci retracements of the upwave starting from 128.77.

Overbought/Oversold

The Detrended Oscillator is in the overbought area. Assuming that the prevailing trend is still down, a reversal can not be ruled out. So in case of a topping signal it's good to enter short.