09.08.201110:01 Forex Analysis & Reviews: GBP/JPY Elliott wave count and Fibonacci levels for August 9, 2011

GBP/JPY has developed the wave from 135.11 to 124.16 and is now moving in a corrective wave against this movement. Current wave A of long term uptrend (colored light green in the chart) now has A and B subwaves, with subwave B still developing from 130.81 (colored magenta in the chart). Within wave B there are three subwaves (colored red in the chart) with subwave C still developing from 128.87.

The targets below the current price level are Fibonacci expansions off 130.81-127.38-128.87, 128.87-126.45-127.30.

Supports:

- 125.44 = objective point (OP), already hit (!)
- 124.88 = OP
- 123.38 = expanded objective point (XOP)
- 123.32 = XOP
- 120.96 = super expanded objective point (SXOP)
- 119.89 = SXOP

If the price keeps moving up the immediate resistances will be Fibonacci retracements of 139.94-124.16, 135.11-124.16, and 130.81-125.36.

Resistances:

- 127.44 = .382 retracement
- 128.09 = .50 ret
- 128.73 = .618 ret
- 130.93 = .618 ret
- 132.05 = .50 ret
- 133.91 = .618 ret

Overbought/Oversold

Assuming that the medium term trend 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 (40-60 pips above the current prices).

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