08.08.201110:28 Forex Analysis & Reviews: GBP/JPY Elliott wave count and Fibonacci levels for August 8, 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 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).

The targets below the current price level are Fibonacci retracements of 124.16-130.81, and 125.25-130.81, and expansions off 130.81-127.38-128.87.

Supports:

- 127.49-37 = confluence area of .50 and .618 retracements
- 126.75-70 = confluence area of contracted objective point (COP) and .618 ret
- 125.44 = objective point (OP)
- 123.32 = expanded objective point (XOP)

If the price keeps moving up the immediate resistances will be Fibonacci retracements of 139.94-124.16, 135.11-124.16, and expansions off 124.16-130.81-127.38.

Resistances:

- 130.93 = .618 ret
- 131.49 = contracted objective point (COP)
- 132.05 = .50 ret
- 133.91 = .618 ret
- 134.03 = objective point (OP)

Overbought/Oversold

Assuming that the medium term trend is now up it's preferable to try long positions when the Detrended Oscillator gets below the zero level (current prices) or into the oversold area (15-35 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.