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.

Read more on how to trade with Fibonacci levels.