GBP/JPY Elliott wave count and Fibonacci levels, October 4, 2010

According to wave count this currency pair has just ended daily corrective wave B (colored royal blue on the chart). To confirm wave C break above 135.03 is needed. If the price breaks below 130.78 it means that wave C will be a downwave with the wave up starting from 130.78 regarded as B (now developing).

The targets of the upside movement are Fibonacci retracements of 135.03-130.78, 133.75-130.78.
Resistances:
– 132.26 = .50 retracement
– 132.40 = .382 ret
– 133.62 = .618 ret
– 132.91 = .50 ret
– 133.41 = .618 ret
In case the price resumes its decline the nearest supports will be Fibonacci retracements of 127.62-135.03.
Supports:- 130.45 = .618 ret

Overbought/OversoldThe Detrended Oscillator is moving into the oversold area. Assuming that impulse upmove is not yet confirmed it’s advisable to stand aside until at least 132.20 is broken to the upside – thus confirming the upmove.

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