05.07.201015:00 Forex Analysis & Reviews: GBP/JPY Elliott wave count and Fibonacci levels, July 5, 2010

GBP/JPY is now standing in correction to longterm and intermediate downtrend. The targets of the corrective wave B (colored magenta on the chart) are Fibonacci retracement points of 135.23-131.23 and expansions off 131.23-133.84-132.72.

The nearest resistances are:

- 133.70 = .618 retracement, reached already
- 134.29-33 = confluence area of .764 retracement and contracted objective point (COP)
- 135.33 = objective point (OP)

In case the price keep declining, the nearest supports will be Fibonacci retracement points of 131.23-133.84 and expansion points off 133.84-132.72-133.59.

Nearest supports are:

- 132.90 = COP
- 132.54-47 = confluence area of OP and .50 retracement
- 132.23 = .618 retracement
- 131.85-78 = confluence area of .764 ret and expanded objective point (XOP)

Overbought/Oversold

The Detrended is now oscillating around the zero level. As soon as the shorter term uptrend is up one can try longs against 132.90, which is where the market will be oversold. Short entries with the prevailing longterm downtrend are favored in the vicinity of 133.84 and 134.29-33, which is where the market will be overbought.