FX.co ★ GBP/JPY Elliott wave count and Fibonacci levels, September 1, 2010

According to wave count on hourly timeframe this currency pair is now developing corrective wave B (colored red on the chart) within impulse C (colored light green) of a larger degree. The strategic targets of the downside movement are Fibonacci expansions off 137.75-128.77-133.59.

Supports:

- 128.04 = contracted objective point (COP)
- 124.61 = objective point (OP)

While the move up is so far considered corrective, its targets are Fibonacci retracements of 133.59-128.64.

Resistances:

- 130.53 = .382 retracement
- 131.12 = .50 ret
- 131.70 = .618 ret

Subwave C (red) will be confirmed on 128.64 break.

Overbought/Oversold

The Detrended Oscillator is in the overbought area. Assuming that the prevailing trend is down and the current move up being corrective, it's advisable to seek for topping signals against one of the Fibonacci resistances listed above to enter short.