FX.co ★ GBP/JPY Elliott wave count and Fibonacci levels, September 24, 2010

This currency pair is now trading in the flat limited by 135.03-131.70. The breakout of the flat will show the future direction of the med term trend. The last wave of the med term trend according to wave count is corrective - B (colored magenta on the chart). The daily wave down is also B (colored royal blue on the chart).

The targets of the upside movement are Fibonacci retracements of 135.03-131.70, and expansions off 131.70-132.76-132.15, 127.62-135.03-131.70.

Resistances:

- 133.76 = .618 retracement, the price reversed within just 1 pip (!)
- 133.87 = expanded objective point (XOP)
- 134.93 = super expanded objective point (SXOP)
- 136.28 = contracted objective point (COP)

In case the price breaks out of the flat to the downside the nearest targets below the current price will be Fibonacci retracements of 127.62-135.03, and expansions off 135.03-131.70-133.75.

Supports:

- 131.69 = COP
- 131.32 = .50 ret
- 130.45-42 = confluence area of .618 retracement and objective point (OP)

Overbought/Oversold

The Detrended Oscillator is now moving into the oversold. Assuming that there's no clear trend, it's advisable to stand aside. However very short-term selling positions may be an alternative, especially when the price gets back into the overbought - 40-50 pips above the curren tprice.