Pound/yen is now developing corrective wave B of weekly degree. Wave A - 135.03-126.43. The tragets of the corrective upmove are Fibonacci retracements of 135.03-126.43 (wave A), and expansions off 126.43-129.58-128.51.
Resistances:
- 129.72 = .382 retracement
- 130.46 = contracted objective point (COP)
- 130.73 = .50 ret
If the price reverses down the nearest supports will be Fibonacci retracements of 126.43-129.58.
Supports:
- 128.38 = .382 ret
- 128.01 = .50 ret
- 127.63 = .618 ret
Overbought/Oversold
The Detrended Oscillator is oscillating around the zero, which confirms the flat. Assuming that the wave up is of large degree it's preferable to seek for bottoming signals to enter long when the price hits a Fibonacci support or gets into the oversold - 20-30 pips to go.
Read more on how to apply Fibonacci studies to calculate price targets.
