GBP/JPY Elliott Wave Count and Fibonacci levels for May 30, 2012
The GBP/JPY pair is developing an impulse wave C of he medium term downtrend from 129.32 (light green in the chart). Within this wave we have three subwaves (magenta in the chart) and an impulse subwave C developing from 126.39 including three subwaves (red in the chart) and an impulse subwave C developing from 125.03.
Presently the downside targets are Fibonacci expansions of 131.75-127.76-129.33, 129.33-124.59-126.39, 126.39-124.08-125.03, 125.03-124.33-124.92, 124.92-123.84-124.39.
- 123.79-72 = confluence area of expanded objective point (XOP) and contracted objective point (COP)
- 123.60 = COP
- 123.46 = COP
- 123.31 = objective point (OP)
- 123.09 = super expanded objective point (SXOP)
If the price reverses to the upside, the immediate resistances will be Fibonacci retracements of the wave down from 125.03 - this wave is not developed yet, so no resistances are available so far.
The bigger wave is now moving downwards, so it is preferable to try short positions when the Detrended Oscillator goes above the zero level (5-10 pips above the current prices) or into the overbought area (20-30 pips above the current prices). Watch for opportunities to go short at or near the indicated resistances.
Read more on how to trade with Fibonacci levels.
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