GBP/JPY Elliott wave count and Fibonacci levels for July 11, 2011

GBP/JPY has finished corrective subwave B from 128.19 to 130.82 (colored royal blue in the chart) that is part of impulse wave C of long term downtrend (from 132.30) - this one is light green in the chart. Now we have potential impulse wave C developing from 130.82 (colored royal blue). Within this wave there are A, B and C subwaves - colored red. Subwave C from 130.09 is still developing.
Now the targets of the downmove are Fibonacci expansions off 139.93-130.26-135.11, 135.11-129.74-132.30, 132.30-128.19-130.82, 130.82-128.95-130.09, 130.09-129.56-130.03.
Supports:
- 128.93 = contracted objective point (COP), achieved (!)
- 128.64 = super expanded objective point (SXOP)
- 128.28-22 = confluence area of COP and objective point (OP)
- 127.06 = expanded objective point (XOP)
- 126.93 = OP
- 126.71 = OP
If the price reverses to the upside the immediate resistances will be Fibonacci retracements of 130.82-128.89 and then 135.11-128.19.
Resistances:
- 129.63 = .618 ret
- 129.85 = .382 ret
- 130.08 = .50 ret
- 130.08 = .382 ret

Overbought/Oversold
Assuming that the medium term trend is down it's preferable to try short positions when the Detrended Oscillator gets above the zero level (10-15 pips above the current prices) or into the overbought area (30-40 pips above the current prices).
http://instaforex.com/forex_analysis/33048/?x=OUE