The GBP/JPY is developing corrective subwave B (colored magenta in the chart) within wave A of medium term uptrend - colored royal blue in the chart. The targets of the downmove are Fibonacci retracements of 126.02-133.04, 122.49-133.04, and expansions off 133.04-131.19-131.75.
Supports:
- 129.90 = objective point (OP)
- 129.53 = .50 ret
- 129.01 = .382 ret
- 128.76-70 = confluence area of expanded objective point (XOP) and .618 ret
- etc.
If the price keeps advancing the immediate resistances will be Fibonacci retracements of 131.75-130.28, 133.04-130.28.
Resistances:
- 130.84 = .382 ret
- 131.01 = .50 ret
- 131.19 = .618 ret
- 131.33 = .382 ret
- etc.
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Overbought/Oversold
Assuming that the medium term has reversed to the downside it's preferable to look for shorts when the Detrended Oscillator gets above the zero level (5-10 pips above the current price), or into the overbought area (80-110 pips above the current price - this rougly corresponds to 131.33 Fib resistance level).
Read more on how to apply Fibonacci studies to calculate price targets.
Performed by Roman Molodiashin, Analytical expert
InstaForex Companies Group © 2007-2011
http://instaforex.com/forex_analysis/25545/?x=OUE
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