18.10.201109:35 Forex Analysis & Reviews: GBP/JPY Elliott wave count and Fibonacci levels for October 18, 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 three subwaves (colored magenta in the chart), and subwave C is still developing from 120.27. The targets of the upmove are Fibonacci retracements of 130.81-116.78 and expansions off 116.78-120.78-116.91, 116.91-122.30-120.27, 120.27-122.58-120.76.

Resistances:

- 123.07 = objective point (OP)
- 123.38 = expanded objective point (XOP)
- 123.60 = contracted objective point (COP)
- 123.80 = .50 retracement
- 124.50 = XOP
- 125.45 = .618 ret
- 125.66 = OP

If the price reverses to the downside the immediate supports will be Fibonacci retracements of 116.91-122.58.

Supports:

- 120.41 = .382 ret
- 119.75 = .50 ret
- 119.08 = .618 ret

Overbought/Oversold

Assuming that the major wave is now up it's preferable to try long positions when the Detrended Oscillator gets below the zero level (15-20 pips below the current prices) or into the oversold area (50-65 pips below the current prices).

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