Pound/yen is moving within wave C of the daily downtrend - colored royal blue in the chart. Within the daily wave there's a set of 3 subwaves with wave C developing - colored magenta on the chart. The latter is also subdivided into smaller waves.
At this moment the targets of the downmove are Fibonacci expansions off the daily waves A-B - 135.03-130.78-132.93, and expansions off minor waves 132.93-129.98-131.06, 131.06-129.87-130.99, and 130.99-130.27-130.72.
Supports:
- 129.06 = expanded objective point (XOP), reached already
- 128.84 = super expanded objective point (SXOP)
- 128.68 = objective point (OP)
- 128.11 = OP
- 127.87 = SXOP
In case the price reverses up for a corrective wave the nearest resistances will be Fibonacci retracements of 130.72-138.97, 130.99-128.97.
Resistances:
- 129.64-74 = .382 retracements
- 129.85 = .50 ret
- 129.98-130.05 = .50 and .618 ret
- 130.22 = .618 ret
Overbought/Oversold
The Detrended Oscillator is in the overbought area. Assuming that the prevailing trend is still down it's preferable to seek for topping signals when the price hits a Fibonacci resistance or when overbought. Now is the moment to seek for turning points.
Read more on how to apply Fibonacci studies to calculate price targets.
