The GBP/JPY pair is developing an impulse wave A of the medium term uptrend from 127.04 (light green in the chart) including  two subwaves (red in the chart) and a potential corrective subwave B developing from 131.73.

The downside targets are Fibonacci retracements of 127.04-131.73.

Supports:

- 129.94 = .382 retracement
- 129.38 = .50 ret
- 128.83 = .618 ret

If the uptrend continues its movement, the immediate resistances will be Fibonacci expansions of the waves 127.04-131.73 and its retracement. The retracement is not completed yet, so resistances are not available.

Overbought/Oversold

The bigger wave is now moving up, so it is preferable to try long positions when the Detrended Oscillator goes below the zero level (10-15 pips below the current prices) or into the oversold area (30-40 pips below the current prices). Consider the opportunities to go long at or near the indicated supports.

Read more on how to trade with Fibonacci levels.