04.11.201109:20 Forex Analysis & Reviews: GBP/JPY Elliott wave count and Fibonacci levels for November 4, 2011

GBP/JPY is developing impulse wave C (colored light green in the chart) of medium term uptrend from 116.91. Within this wave there are four subwaves (colored royal blue in the chart), and corrective subwave 4 is still developing from 127.25. Within the latter wave there are two waves (colored red in the chart) with subwave B developing from 123.85. The targets of the upmove are Fibonacci retracements of 127.25-123.85.

Resistances:

- 125.55 = .50 retracement
- 125.95 = .618 ret
- 126.52 = .786 ret

If th price keeps declining the immediate supports will be Fibonacci retracements of 119.93-127.25, and expansions off 127.25-123.85-125.25.

Supports:

- 123.59 = .50 retracement
- 123.15 = contracted objective point (COP)
- 122.73 = .618 ret
- 121.85 = objective point (OP)

Overbought/Oversold

Assuming that the major wave is now down it's preferable to try short positions when the Detrended Oscillator gets above the zero level (current prices) or into the overbought area (20-40 pips above the current prices).

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