The red wave iv triangle has behaved just as expected and now looks complete, but to confirm that red wave v higher towards 144.58 is developing, we still need a break above minor resistance at 140.59 and more importantly a break above 140.75.

Short-term a slightly deep decline closer to 139.58 can not be excluded before the final leg of the triangle is complete, but it all comes down to a break above minor resistance at 140.59 as the trigger for the impulsive rally higher.

R3: 141.50

R2: 141.00

R1: 140.75

Pivot: 140.59

S1: 140.12

S2: 139.85

S3: 139.58

Trading recommendation:

We are long GBP from 140.12 with our stop placed at 138.75. If you are not long GBP yet, the buy a break above 140.59 and place you stop at 139.40.