Short-term important resistance at 135.09 once again capped the upside and extended the sideways consolidation in minor wave 2. We continue to look for support in the 134.27 - 134.35 area for an ultimate break above short-term resistance at 135.09 confirming a continuation higher to resistance in the 136.28 - 136.06 area. A break above here will confirm that wave 2 is completed and wave 3 pushes higher towards at least 156.76 where wave 3 will be 161.8% the length of wave 1.
Thus, a break below 133.82 is rather undesirable.
R3: 136.28
R2: 136.05
R1: 135.28
Pivot: 135.02
S1: 134.77
S2: 134.57
S3: 134.35
Trading recommendation:
We are long GBP from 134.85
The material has been provided by InstaForex Company - www.instaforex.com