The corrective decline from the 139.74 is way different from what was expected if this corrective decline had been black wave iv/. The is no alternation between black wave ii/ and black wave iv/, which lead us to believe, that the corrective decline from 137.74 only is red wave ii and a much stronger rally is expected in red wave iii towards 148.32.

A break above minor resistance at 135.25 og more importantly above resistance at 135.90 that confirm the correction from 139.74 is complete and a new impulsive rally is developing.

R3: 136.26

R2: 135.90

R1: 135.25

Pivot: 134.95

S1: 134.59

S2: 134.09

S3: 133.77

Trading recommendation:

We are long GBP from 135.35 and we have placed our stop at 133.70