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 three subwaves (royal blue in the chart), A, B, and an impulse subwave C developing from 133.19 including three subwaves (magenta in the chart) and impulse subwave C developing from 130.81. At smaller level there are A, B, and C waves (orange red in the chart); the subwave C is developing from 129.58.

Now the downside targets are Fibonacci expansions 133.42-129.94-133.32, 133.32-130.08-133.19, 133.19-129.45-130.81, 130.81-129.09-129.58.

Supports:

- 128.52-50 = confluence area of two contracted objective points (COP)
- 127.95-86 = confluence area of expanded objective point (XOP) and objective point (OP)
- 127.69 = XOP
- 127.07 = OP

If the price reverses to the upside the immediate resistances will be Fibonacci retracements of the wave down from 133.19 - this wave is not developed yet, so resistances are not available.

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 (current prices) or into the overbought area (35-50 pips above the current prices). Watch for opportunities to go short at or near the indicated resistances.