GBP/JPY Elliott wave count and Fibonacci levels, October 19, 2010

This currency pair is still developing daily wave C – colored royal blue in the chart. Within this wave there’s wave C that is still developing – colored magenta in the chart. Within the latter wave C there’s corrective subwave B developing, it’s colored red in the chart. The targets of the corrective upmove are Fibonacci retracements of 130.69-128.66 and expansions off 128.66-129.44-128.89.

– 129.37 = contracted objective point (COP)
– 129.44 = .382 retracement
– 129.67-68 = confluence area of objective point (OP) and .50 ret
– 129.91 = .618 ret
In case the price continues the downtrend the nearest supports will be Fibonacci expansions off 135.03-130.78-132.93 (daily waves A-B), 132.93-128.97-130.69 (subwaves within daily C), and still smaller waves 130.69-128.66-129.44.
– 128.68 = objective point (OP), reached almost precisely (!)
– 128.24-19 = confluence area of two contracted objective points (COP)
– 127.41 = OP

The Detrended Oscillator is oscillating around the zero level, confirming the flat. Assuming that the larger waves are heading down it’s preferable to wait for deep retracements up to Fibonacci resistances and seek for topping signals to enter short.

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