GBP/JPY is building a base for the next impulsive rally higher. We continue to look for a break above minor resistance at 136.60 that confirms red wave iv/ has completed and red wave v/ has taken over for an impulsive rally to and above the former 142.72 peak.
Short-term support at 135.50 should be able to protect the downside for the expected break above minor resistance at 136.60.
R3: 137.10
R2: 136.60
R1: 136.06
Pivot: 135.90
S1: 135.75
S2: 135.50
S3: 135.25
Trading recommendation:
We are long GBP from 135.55 with our stop placed at 135.00
