GBP/JPY Elliott wave count and Fibonacci levels for August 16, 2011

GBP/JPY is developing corrective wave B of medium term downtrend from 123.27 (colored magenta in the chart). Within this wave there are three subwaves (colored orange red in the chart) with subwave C still developing from 123.95.
The targets of the upmove are Fibonacci retracements of 130.81-123.27, 128.87-123.27, and expansions off 123.27-124.96-123.95, 123.95-125.61-124.96.
Resistances:
- 125.99 = contracted objective point (COP)
- 126.07-15 = confluence area of .50 and .382 retracements
- 126.62-68-73 = confluence area of objective point (OP), expanded objective point (XOP), and .618 ret
- 127.04 = .50 ret
- 127.65 = XOP
- 127.93 = .618 ret
- 128.37 = super expanded objective point (SXOP)
If the price reverses to the downside the targets of the downmove will be Fibonacci retracements of 123.27-125.99.
Supports:
- 124.95 = .382 ret
- 124.63 = .50 ret
- 124.31 = .618 ret

Overbought/Oversold
Assuming that the medium term trend is now 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 (45-65 pips above the current prices).

http://instaforex.com/forex_analysis/36012/?x=OUE 

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