We currently see two options for GBP/JPY. The first is that a expanded flat correction is unfolding as red wave b/ of red wave ii/. This red wave b/ should complete near 139.02 and then red wave c/ should take over for a final dip closer to support in the 139.06 - 136.19 area from where a new impulsive rally towards 139.54 and 142.19 should be seen.
The second option is a direct rally higher through minor resistance at 139.54 towards 142.19. The likelyhood of one over the other is about fifty-fifty.
R3: 139.54
R2: 139.02
R1: 138.57
Pivot: 138.27
S1: 137.71
S2: 137.20
S3: 136.70
Trading recommendation:
We bought GBP at 137.95 and we have placed our stop at 137.19. We will take 50% profit at 138.95.
