FX.co ★ GBP/JPY Elliott wave count and Fibonacci levels - February 23, 2011

The GBP/JPY is now developing corrective wave 4 of medium term uptrend (colored light green in the chart). The targets of wave 4 are Fibonacci retracements of 129.75-135.56, 131.62-135.56, and expansions off 135.54-133.31-134.20.

Supports:

- 133.13 = .618 retracement
- 132.82 = contracted objective point (COP)
- 132.66 = .50 ret
- 131.97 = confluence area of objective point (OP) and .618 ret

If the price keeps advancing the immediate resistances will be Fibonacci retracements of 135.54-133.31, and if the price goes above 135.56, we'll use Fibonacci expansions off 129.49-132.64-129.75, 129.75-133.31-131.62, 131.62-135.56-133.31.

Resistances:

- 134.43 = .50 ret
- 134.69 = .618 ret
- 135.74 = COP

Overbought/Oversold

Assuming that the medium term trend is up, but now a corrective wave is developing, it's preferable to stand aside, until wave 5 manifests itself.

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