The pair declined after the prolonged sideways consolidation between 135.41 and 136.59. We saw a clear break below support at 135.41 for a dip to 134.50 to test the channel-support. This support held well. We need a break back above resistance at 136.59 to confirm that red wave iv/ finally has completed and red wave v/ can take hold for a new impulsive rally. It should break above the former peak at 142.72.
R3: 137.08
R2: 136.59
R1: 136.10
Pivot: 135.60
S1: 135.35
S2: 135.06
S3: 134.50
Trading recommendation:
We will buy GBP upon a break above 136.59