Page 8 - Module 11 The Fibonacci science

Module 11 – The Fibonacci Science

5. Currently (17 Jan 2008) it is retesting the 23.60% level once again as a support and if this time
it breaks the 23.60% level, it will go down and if not, it will go up.

Let’s look at another example. Follow the red numbers on the below chart:

1. There was a big downtrend in the GBP/JPY that started on 22 July 2007 and ended
on 17 Aug 2007. So, I drew the Fibonacci levels from the top to the bottom (from 22 July 2007
to 17 Aug 2007).
2. While going up, the price touched the 23.60% level on 20 Aug 2007 and could break it easily,
but on the next day it went down to retest the 23.60% level as a support. It could not be broken
and so the price went up.
3. The price didn’t show any reaction to the 38.20% level as a resistance and went up but was
stopped by the 50% on 26 Aug 2007. From 26 Aug to 1 Oct 2007, price went up and down
between the 23.60% and 50% levels. During this period of time, the 38.20% level worked as
support and resistance several times and it seemed that the price was rotating around the
38.20% level. It made a consolidation around the 38.20% level.
4. The 50% level was broken finally on 1 Oct 2007 and the price went up.
5. It had a hard time in breaking the 61.80%. It tried for ten days from 5 to 16 Oct 2007 to break
the 61.80% level but failed and bounced down.
6. While going down, it passed through the 50% level without any problem, but was stopped by
the 38.20% level that acted as support on 22 Oct 2007. It went up on 23 Oct, tested the 50%
level, went down on 24 Oct and then tested the 50% on 29 Oct and could break it up.
7. On 31 Oct 2007, it reached the 61.80% once again and tried for several days but failed again,
went down and made a double top.
8. It became completely disappointed about going up and retesting the 61.80% level, because it
went much lower after it failed to break the 61.80% level.
9. On 9 Nov 2007 it broke the 38.20% level and made a consolidation around the 23.60% level.
Like the 61.80% level, the 23.60% level acted as support and resistance several times and a
consolidation was formed around it.

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