GBP/JPY – 148.85
New strategy :
Stand aside
Position: –
Target: –
Stop:-
Although sterling slipped again yesterday to as low as 148.10, as the pound has rebounded again after holding above support at 148.05, retaining our view that further consolidation would take place and another bounce to 149.50-55 cannot be ruled out, however, reckon resistance at 150.00 would hold and bring another decline later.
On the downside, below said support at 148.05 would signal the erratic fall from 151.90 top is still in progress for weakness to previous support at 147.80 but oversold condition should limit downside and support at 147.30 should remain intact.
Our preferred count is that larger degree wave V with circle is unfolding from 251.12 with wave (I) 219.34, (II): 241.38 and wave (III) is subdivided into 1: 192.60, 2: 215.89 (23 Jul 2008) and wave 3 ended at 118.87 earlier in 2009. The correction from there to 162.60 is wave 4 which itself is a double three and is labeled as first a-b-c ended at 151.53, followed by wave x at 139.03, 2nd a ended at 162.60, 2nd b at 146.75 and 2nd c leg of wave 4 ended at 163.00. Therefore, the decline from 163.00 to 116.85 is now treated as wave 5 which also marked the end of larger degree wave (III), hence wave (IV) major correction has commenced for retracement of the wave (III) from 241.38 and upside target at 183.95-00 (50% Fibonacci retracement of the wave (II) from 241.38) had been met, a drop below 160.00 would suggest wave (IV) has ended at 195.85, bring decline in wave (V) for initial weakness to 130 (already met) and 120.
