18.10.201109:35 Forex Analysis & Reviews: GBP/JPY Elliott wave count and Fibonacci levels for October 18, 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.

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).

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.