Short-term support at 133.69 continues to protect the downside. Therefore, the possibility for a spike above the peak at 135.72 looks likely. We favor a break below key-support at 133.69 confirming that wave iv has completed and wave v being in motion for a decline to below 123.99.
We must accept that as long as key-support at 133.69 is able to stay unbreached, a rally to above 135.72 may occur, but the odds for this outcome are low.
R3: 136.36
R2: 134.40
R1: 135.02
Pivot: 133.69
S1: 132.97
S2: 132.41
S3: 131.41
Trading recommendation:
We sold GBP at 134.35 with our stop placed at 135.50
