The GBP/JPY pair is developing an impulse wave C of medium term downtrend from 133.32 (light green in the chart). Within this wave we have three subwaves (royal blue in the chart), A, B, and impulse subwave C that is developing from 133.19. Within this wave there are three subwaves (magenta in the chart), and impulse subwave C is developing from 130.81. On still smaller level there are A, B and C waves within it (red in the chart), and subwave C is developing from 130.17.
Now the targets below are Fibonacci expansions off 133.42-129.94-133.32, 133.32-130.08-133.19, 133.19-129.45-130.81, 130.81-128.77-130.17.
Supports:
- 127.69 = expanded objective point (XOP)
- 127.07 = objective point (OP)
- 126.87 = XOP
If the price reverses to the upside the immediate resistances will be Fibonacci retracements 130.81-127.82.
Resistances:
- 128.96 = .382 retracement
- 129.32 = .50 ret
- 129.67 = .618 ret
Overbought/Oversold
The bigger wave is now moving downwards, so it is preferable to try short positions when the Detrended Oscillator goes above the zero level (current prices) or into the overbought area (current prices). Consider the opportunities to go short at or near the indicated resistances.
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