Wednesday, July 13, 2011

GBP/JPY Elliott Wave count & Fibonacci levels

GBP/JPY broke below 128.19 and thus confirmed wave C of medium term downtrend (colored royal blue in the chart).

This wave however is part of impulse wave C of long term downtrend (from 132.30) - this one is light green in the chart. Within the "royal blue" wave there are waves of still smaller degrees - magenta (A), red (four waves), and still smaller orange red (A) and yellow (A).

Now the resistances are Fibonacci retracements of 130.09-124.87, 130.82-124.87.

Resistances:

- 126.86 = .382 retracement
- 127.14 = .382 ret
- 127.48 = .50 ret
- 127.85 = .50 ret
- 128.10 = .618 ret
- 128.55 = .618 ret

If the price keeps going down, the immediate supports will be Fibonacci expansions off 139.93-130.26-135.11, 135.11-129.74-132.30, 132.30-128.19-130.82.

Supports:

- 124.17 = expanded objective point (XOP)
- 123.61 = XOP



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 (15-25 pips above the current prices).

Performed by Roman Molodiashin, Analytical expert
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