FX.co ★ GBP/JPY Elliott wave count and Fibonacci levels for August 1, 2011

GBP/JPY is now moving within corrective wave 4 of long term downtrend - colored light green in the chart. Within this wave there are A, B and C subwaves with subwave C from 125.97 still developing (colored royal blue in the chart).

The immediate resistances are Fibonacci retracements of 132.30-124.87, 130.82-124.87, and expansions off 124.87-128.40-125.97.

Resistances:

- 128.55-59 = confluence area of .618 and .50 retracements
- 129.46-50 = confluence area of .618 ret and objective point (OP)

If the price reverses to the downside the immediate supports will be Fibonacci retracements of 124.87-128.50 and 125.97-128.50.

Supports:

- 127.24 = .50 ret
- 127.11 = .382 ret
- 126.94 = .618 ret
- 126.69 = .50 ret
- 126.26 = .618 ret

Overbought/Oversold

Assuming that the medium term trend is now up it's preferable to try long positions when the Detrended Oscillator gets below the zero level (5-15 pips below the current prices) or into the oversold area (35-50 pips above the current prices).

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