Pound/yen is developing subwave C (colored magenta) within wave C of the larger degree - colored royal blue. Within the smaller wave there's a set of 4 waves with corrective wave 4 developing - colored red on the chart.
The targets of the corrective move are Fibonacci retracements of 128.66-127.40, 129.44-127.40, and 130.69-127.40.
Resistances:
- 128.03 = .50 retracement
- 128.18 = confluence area of .382 and .618 retracements
- 128.66 = confluence area of .618 and .382 retracements
- 129.05 = .50 ret
- 129.43 = .618 ret
If the price breaks below 127.40 to continue the downtrend the nearest supports will be Fibonacci expansions off 135.03-130.78-132.93 (daily waves A-B), 132.93-128.97-130.69 (subwaves within daily C), and still smaller waves 130.69-128.66-129.44.
Supports:
- 126.73 = objective point (OP)
- 126.16 = expanded objective point (XOP)
- 126.05 = XOP
Overbought/Oversold
The Detrended Oscillator is slightly above the zero level. Assuming that the prevailing trend is down, now is a good opportunity to get a topping signal to enter short.
Read more on how to apply Fibonacci studies to calculate price targets.
