19.05.201108:47 Forex Analysis & Reviews: GBP/JPY Elliott wave count and Fibonacci levels for May 19, 2011

Long-term review

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GBP/JPY is developing potential impulse subwave C (colored red in the chart), that is part of corrective wave 4 (colored royal blue in the chart).

The targets of the upmove are Fibonacci retracements of 137.03-130.26, 133.16-130.74, and expansions off 130.26-133.16-130.74.

Resistances:

- 132.24 = .618 retracement
- 132.53 = contracted objective point (COP)
- 133.27 = .382 ret
- 133.64 = confluence area of objective point (OP) and .50 ret

If the price keeps declining the immediate supports will be Fibonacci retracements of 122.49-139.93, and expansions off 139.93-132.90-137.03.

Supports:

- 130.00 = OP
- 129.15 = .618 ret

Overbought/Oversold

Assuming that the medium term trend is down but a corrective wave up is developing it's preferable to stand aside or try longs when the Detrended Oscillator gets below the zero level (current prices) or into the overbought area (30-40 pips below the current prices).

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