The correction from 137.79 has been completed just below our anticipated target at 137.05 (the low was seen at 136.96). GBP/JPY is testing short-term important resistance at 137.79 again. A breakout above here will confirm that the wave 2 has culminated with the test of 136.53 and the wave 3 is developing. The wave 3 is expected to eventually break above the 148.87 peak from mid-March for a continued movement towards 156.61.
R3: 139.68
R2: 138.73
R1: 137.17
Pivot: 137.79
S1: 137.38
S2: 136.69
S3: 136.53
Trading recommendation:
We are long GBP from 137.50 with our stop loss order placed at 136.50.
