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

Wave count on hourly timeframe shows that this currency pair is now developing corrective wave B (colored red on the chart) within daily impulse C (colored light green). The targets of the corrective upside movement are still Fibonacci retracements of 133.59-128.64.

Resistances:

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

If the price breaks .618 retracement, daily wave C will be canceled.

The calculations for the downside movement are the following. The targets below are Fibonacci retracements of 128.64-130.91, and expansions off 137.75-128.77-133.59, 133.59-128.64-130.91.

Supports:

- 128.08 = contracted objective point (COP)
- 127.85 = COP
- 125.96 = objective point (OP)

The break of 128.64 will confirm subwave C (red) within the daily wave C.

Overbought/Oversold

The Detrended Oscillator is turning back from the oversold 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. However short-term positions within the corrective wave can not be ruled out for short-term traders.