FX.co ★ GBP/JPY Elliott wave count and Fibonacci levels, September 3, 2010

According to wave count this currency pair is still developing potential daily wave C (colored light green on the chart). Confirmation of this wave is the break of 128.64. The targets of the downside movement are Fibonacci expansions off 137.75-128.77-133.59, 133.59-128.64-130.91.

Supports:

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

However if the corrective subwave B (colored magenta) continues, the nearest resistances will be Fibonacci retracements of 133.59-128.64 and expansions off 128.64-130.91-129.15.

Resistances:

- 130.55 = COP
- 131.12 = .50 retracement
- 131.42 = OP
- 131.70 = .618 ret
- 132.82 = expanded objective point (XOP)

Overbought/Oversold

The Detrended Oscillator is oscillating around the zero level for quite a long time, indicating a flat market. Assuming that the current upside movement is considered a corrective wave and with the prevailing trend down it's advisable to seek for topping signals against one of the Fibonacci resistances listed above to sell short.