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 2 subwaves with corrective wave B developing - colored magenta on the chart. The latter is also subdivided into A-B-C cycle and wave C developing.
The targets of the corrective upmove are Fibonacci retracements of 132.93-128.97, and expansions off 128.97-130.36-129.59.
Resistances:
- 130.45-48 = confluence area of contracted objective point (COP) and .382 retracement
- 130.95-98 = confluence area of .50 ret and objective point (OP)
- 131.42 = .618 ret
- 131.84 = expanded objective point (XOP)
In case the price resumes its decline the nearest targets below the current level will be Fibonacci expansions off the daily waves A-B - 135.03-130.78-132.93, and expansions off minor waves 132.93-128.97-130.48.
Supports:
- 128.68 = OP
- 128.03 = COP
Overbought/Oversold
The Detrended Oscillator is under the zero level, possibly indicating that the leg up has ended. Assuming that the prevailing trend is donw now is the thime to be considering a short position.
Read more on how to apply Fibonacci studies to calculate price targets.
