The risk-off attitude in overnight trading has changed the corrective shape from 140.32 and more downside pressure towards 136.20 should be expected in a deeper sub-wave correction. Once this correction is complete near 136.20, renewed upside pressure will be expected towards 138.87 and ultimately above 142.72.
Only an unexpected break below the trendline-support at 134.85 will force a recount of our bullish outlook.
R3: 138.87
R2: 138.22
R1: 137.78
Pivot: 137.48
S1: 137.16
S2: 136.77
S3: 136.20
Trading recommendation:
Our stop at 137.45 has been hit for a nice 200 pips profit. We will re-buy GBP at 136.40 or upon a break above 137.95
