The GBP/JPY pair is developing an impulse wave C of the medium term downtrend from 133.32 (light green in the chart). Within this wave we have five subwaves (royal blue in the chart) and an impulse subwave 5 developing from 129.51 comprising three subwaves (yellow in the chart) and impulse subwave C developing from 129.30.

The targets below the current price are Fibonacci expansions of 133.42-129.94-133.32, 133.32-130.08-133.19, 133.19-127.82-129.51, 129.51-128.63-129.30.

Supports:

- 127.00 = super expanded objective point (SXOP)
- 126.19 = contracted objective point (COP)

If the price reverses to the upside, the immediate resistances will be Fibonacci retracements of the wave down from 129.51. As this wave is not developed yet,  resistances are not availible yet.

Overbought/Oversold

The bigger wave is now moving downside, so it is recommended to try short positions when the Detrended Oscillator goes above the zero level (30-35 pips above the current prices) or into the overbought area (65-80 pips above the current prices). Watch for opportunities to go short at or near the indicated resistances.

Read more on how to trade with Fibonacci levels.