FX.co ★ GBP/JPY Elliott wave count and Fibonacci levels, October 5, 2010

Wave count shows that this currency pair is moving within daily impulse wave C. However to confirm this wave break above 135.03 is needed. In case 135.03 remains intact this upwave will be corrective to 135.03-130.78 (therefore marked C // B in the chart).

The targets of the upmove are Fibonacci retracements of 135.03-130.78, 133.75-130.78, and expansions off 130.78-132.30-131.08, 131.08-132.17-131.79.

Resistances:

- 132.88-91 = confluence area of objective point and .50 retracement
- 133.41 = .618 ret
- 133.54-55 = confluence area of expanded objective points (XOP)
- 134.64 = super expanded objective point (SXOP)

In case the price reverses down for a correction the nearest supports will be represented by Fibonacci retracements of the upmove starting from 131.08 - wave not developed yet.

Overbought/Oversold

The Detrended Oscillator has got into the oversold area. Assuming that the med term trend is up it's better to wait for a retracement below zero - some 30-40 pips more to go - to enter long.

Read more on how to apply Fibonacci studies to calculate price targets.