GBP/JPY Elliott wave count and Fibonacci levels, August 9, 2010

Wave count on larger timeframes shows that this currency pair is standing in a correction to daily wave 130.80-137.75 (colored royal blue). The targets of the longer term wave are Fibonacci retracement points of 134.18-137.75 and 130.80-137.75:
– 135.54 = .618 retracement
– 135.10 = .382 ret
– 134.28 = .50 ret
– and so on, see the image
On smaller timeframes the targets below are Fibonacci expansions off 137.75-135.83-137.47 (ABC sequence colored red), 137.47-135.77-137.07 (ABC sequence within the larger red wave C):
– 135.55 = objective point (OP), reached already
– 135.34 = OP
– 134.36-29 = confluence area of expanded objective points (XOP)
– etc.
The Detrended Oscillator is around its zero level. Assuming that the larger trend is up and that significant Fibnoacci supports (135.54, 135.55) have been reached by the price, we may be looking for opportunities to enter long against the area of the previous support – 135.55 – but only in case of bottoming signals.

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