We are looking for a break above minor resistance at 136.60 to confirm that red wave iv/ finally has completed and a new impulsive rally in red wave v/ to above 142.72 has begun. Yesterday we saw a new test of the minor resistance at 136.60 and once again it rejected this test showing us the importance of this resistance, but once GBP/JPY finally breaks above it, then a rally to key-resistance at 138.36 is next and above here confirms the completion of red wave iv/ and the onset of red wave v/.
R3: 137.47
R2: 136.59
R1: 136.14
Pivot: 135.75
S1: 135.42
S2: 134.94
S3: 134.80
Trading recommendation:
We are long GBP from 135.55 with our stop placed at 135.00
