FX.co ★ GBP/JPY Elliott wave count and Fibonacci levels, October 29, 2010

According to wave count on larger timeframes this currency pair is developing corrective wave to 135.03-126.43 (weekly wave A). The tragets of the corrective upmove are Fibonacci retracements of 135.03-126.43 (wave A), and expansions off 126.43-129.58-128.06.

Resistances:

- 129.72 = .382 retracement
- 130.01 = contracted objective point (COP)
- 130.73 = .50 ret
- 131.21 = objective point (OP)

In case the price reverses to go down the nearest supports will be Fibonacci retracements of 126.43-129.58 and expansions off 129.58-128.06-129.36.

Supports:

- 128.01 = .50 retracement
- 127.84 = objective point (OP)
- 127.63 = .618 ret
- 126.90 = expanded objective point (XOP)

Overbought/Oversold

The Detrended Oscillator is moving back to the zero from the oversold area. Assuming that the prevailing (med term) trend is up, it's preferable to wait until this bottoming signal confirms to enter long or wait for a deeper pullback.

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