10.08.201111:51 Forex Analysis & Reviews: GBP/JPY Elliott wave count and Fibonacci levels for August 10, 2011

GBP/JPY is developing wave C of medium term downtrend from 128.87 (colored red in the chart). Within this wave there are three subwaves with subwave C from 127.01 still developing (colored orange red in the chart). The targets of the downmove are Fibonacci expansions off 130.81-127.38-128.87, 128.87-125-36-127.01, 127.01-124.48-126.22.

Supports:

- 123.69 = objective point (OP)
- 123.50 = OP
- 123.32 = expanded objective point (XOP)
- 122.13 = XOP

If the price reverses to the upside the immediate resistances will be Fibonacci retracements of 130.81-124.48.

Resistances:

- 126.90 = .382 retracement
- 127.65 = .50 ret
- 128.39 = .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 (15-20 pips above the 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.