Tuesday, July 5, 2011

GBP/JPY Elliott Wave count and Fibonacci Levels

GBP/JPY is developing corrective subwave B from 128.19 (colored royal blue in the chart) that is part of impulse wave C of long term downtrend (from 132.30). Now within this wave B there are A, B and C subwaves of still smaller degree - colored magenta in the chart. Subwave C is still developing from 128.40. The targets of the upmove are Fibonacci retracements of 132.30-128.19, and expansions off 128.19-130.06-128.40, 128.40-130.05-129.64.

Resistances:

- 130.25-27 = confluence area of .50 retracement and objective point (OP)
- 130.66 = contracted objective point (COP)
- 130.73 = .618 ret
- 131.29 = OP

If the price reverses to the downside the immediate supports will be Fibonacci retracements of the wave up from 128.40 - this wave is not developed yet.







Overbought/Oversold

Assuming that the medium term trend is down it's preferable to try short positions when the Detrended Oscillator gets above the zero level (current prices) or into the overbought area (25-40 pips above the current prices).


Performed by Roman Molodiashin, Analytical expert
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