The GBP/JPY pair is presently moving within wave C of the medium term uptrend (royal blue in the chart) from the point 126.63. Within this wave we have subwaves A, and B (magenta in the chart) with developingsubwave B coming from 130.04. The latter, however, has three subwaves (yellow in the chart), and subwave C is developing from 129.60.
The downmove targets are equal to the Fibonacci retracements of 126.63-130.04, 125.41-130.04.
Supports:
- 128.74 = .382 retracement
- 128.33-27 = confluence area of .50 and .382 retracements
- 127.93 = .618 ret
- 127.72 = .50 ret
If the price resumes the uptrend, the immediate resistances will correspond to Fibonacci expansions 125.41-129.71-126.63.
Resistances:
- 130.93 = objective point (OP)
Overbought/Oversold
The bigger wave is now moving upwards, so long positions are recommended when the Detrended Oscillator move below the zero level (current prices) or into the oversold area (20-35 pips below the current prices). It is necessary to pay attention to the opportunities to go long at or near the indicated supports.
