GBP/JPY resumed the downward movement and broke slightly below the low at 135.64 keeping red wave ii alive. After a break below 135.64, GBP/JPY moves closer to support at 135.38 but we see a clear loss of downside momentum and the possibility of a low is high. The first strong indication of a low being in place is seen upon a break above 136.25, while a break above resistance at 136.70 will confirm red wave ii being complete and red wave iii is in motion for a rally to above 142.72.
R3: 136.25
R2: 135.93
R1: 135.74
Pivot: 135.64
S1: 135.57
S2: 135.38
S3: 135.05
Trading recommendation:
Our long GBP-position from 135.71 was stopped at 135.60 for a small loss. We will re-buy GBP at 135.45 or upon a break above 136.13
