25.03.201110:06 Forex Analysis & Reviews: GBP/JPY Elliott wave count and Fibonacci levels - March 25, 2011

Long-term review

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

The GBP/JPY is developing corrective subwave B (colored magenta in the chart) within wave A of medium term uptrend - colored royal blue in the chart. The targets of the downmove are Fibonacci retracements of 126.02-133.04, 122.49-133.04, and expansions off 133.04-131.19-131.75.

Supports:

- 129.90 = objective point (OP)
- 129.53 = .50 ret
- 129.01 = .382 ret
- 128.76-70 = confluence area of expanded objective point (XOP) and .618 ret
- etc.

If the price keeps advancing the immediate resistances will be Fibonacci retracements of 131.75-130.28, 133.04-130.28.

Resistances:

- 130.84 = .382 ret
- 131.01 = .50 ret
- 131.19 = .618 ret
- 131.33 = .382 ret
- etc.

Overbought/Oversold

Assuming that the medium term has reversed to the downside it's preferable to look for shorts when the Detrended Oscillator gets above the zero level (5-10 pips above the current price), or into the overbought area (80-110 pips above the current price - this rougly corresponds to 131.33 Fib resistance level).

Back to the list

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.