Pound/yen is moving up in impulse wave C of the medium term uptrend - colored magenta in the chart. within this wave there's also a set of subwaves with wave C developing - colored red. On smaller timeframes all the subwaves are also impulsive - wave 5 (orange red) and wave C (yellow).

The targets of the advance are Fibonacci retracements of 135.03-126.43, and expansions off 126.43-129.58-127.96, 127.96-130.32-128.87, 128.95-131.24-130.10, 130.10-131.49-131.01.

Resistances:

- 131.74 = .618 retracement (!)
- 131.87 = contracted objective point (COP)
- 132.39-40 = confluence area of two objective points (OP)
- 132.69 = expanded objective point (XOP)

In case the price referses downfor a correction the immediate supports will be Fibonacci retracements of 130.10-131.71.

Supports:

- 131.09 = .382 ret
- 130.91 = .50 ret
- 130.72 = .618 ret

Overbought/Oversold

The Detrended Oscillator is below the zero line, confirming the corrective wave. Assuming that the prevailing trend is up, it's preferable to open longs on any weakness - particularly when the price hits a Fibonacci support (.50 or .618) or gets into the oversold - 15-25 pips to go.

Read more on how to apply Fibonacci studies to calculate price targets.