While EUR/JPY holds bullish tone, GBP/JPY remains under downside pressure. The question remains, whether GBP/JPY needs to make a new low closer to 134.52 to complete wave 2 or wave 2 completed with the test of 136.56. When the new Tory leader is elected, GBP may gain momentum moving higher towards 139.60 and 141.40 as the next minor targets.
A break below support at 136.96 will lead for a dip closer to 134.52, while a direct break above minor resistance at 138.33 will indicate a firm bottom already is in place at 136.56.
R3: 138.65
R2: 138.33
R1: 137.77
Pivot: 137.53
S1: 137.28
S2: 136.96
S3: 136.56
Trading recommendation:
We are long GBP from 137.50 with our stop placed at 136.90.
The material has been provided by InstaForex Company - www.instaforex.com