FX.co ★ GBP/JPY Elliott wave count and Fibonacci levels for May 30, 2011

GBP/JPY is still moving within impulse wave C of long term uptrend. On smaller scale this wave has the following subwaves: impulse subwave C (colored royal blue in the chart) that consists of A-B and C subwaves of still smaller degree (colored magenta). Now a corrective wave against 131.25-133.78 is developing. The targets of the downmove are Fibonacci retracements of 131.25-133.78 and expansions off 133.78-132.61-133.62.

Supports:

- 132.90 = contracted objective point (COP)
- 132.51 = .50 retracement
- 132.45 = objective point (OP)
- 132.22 = .618 ret
- 131.73 = expanded objective point (XOP)

If the uptrend resumes the immediate resistances will be Fibonacci retracements of 137.03-130.26, 139.93-130.26, and expansions off 130.26-133.16-130.74, 130.74-132.96-131.25, 131.25-133.78-132.61.

Resistances:

- 133.95 = .382 retracement
- 134.17 = COP
- 134.44 = .618 ret
- 134.84 = expanded objective point (XOP)

Overbought/Oversold

Assuming that the medium term trend is up it's preferable to try longs when the Detrended Oscillator gets below the zero level (current prices) or into the oversold area (15-25 pips below the current prices).

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