Ms. May's won the no confidence vote (no surprise), but it remains unclear whether wave ii completed already with the dip to 137.37 and wave iii is developing towards 151.50 or a more complex wave ii correction is developing. A clear break above the resistance-area between 140.43 – 140.88 will confirm that wave iii is developing. However, while this resistance-area is able to cap the upside, we must accept the possibility of a more complex correction as the most likely outcome for a second decline towards 135.07 to complete wave ii.
R3: 141.19
R2: 140.88
R1: 1.4043
Pivot: 140.03
S1: 139.73
S2: 138.96
S3: 138.53
Trading recommendation:
We will buy GBP at 135.20 or upon a break above 140.90. (If you already bought GBP at 140.43, then sell now or at the latest upon a break below 139.65 and be ready to re-buy GBP again).
The material has been provided by InstaForex Company - www.instaforex.com