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Monday, January 16, 2012

GBP/JPY Elliott wave count and Fibonacci levels for January 16, 2012

GBP/JPY is moving within impulse wave C of medium term downtrend (colored light green in the chart) that started from 122.71, and inside this wave there are three subwaves (colored royal blue in the chart), and impulse subwave C is still moving from 119.05. This wave has been confirmed as it broke below the top of wave A - 118.20.
The immediate supports are Fibonacci expansions off 120.14-118.20-119.05, 122.71-118.20-119.05, 119.05-117.45-118.13.
Supports:
- 117.14-11 = confluence area of contracted objective point (COP)
- 116.53 = objective point (OP)
- 116.26 = COP
- 115.91 = expanded objective point (XOP)
If the price reverses to the upside the targets above will be Fibonacci retracements of 119.05-117.22.
Resistances:
- 117.92 = .382 retracement
- 118.13 = .50 ret
- 118.35 = .618 ret
- 118.66 = .786 ret
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Overbought/Oversold
The bigger wave is now moving down, so it's preferable to try short positions when the Detrended Oscillator gets above the zero level (current prices) or into the overbought area (10-20 pips above the current prices).

 
InstaForex

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