Short-term support at 132.70 continues to protect the downside. So, a final spike to just above 134.73 may occur. We do believe that as time passes this possibility is fading away and the possibility of a clear break below 132.70 and more importantly a break below support at 132.10 will be more likely. A break below 132.10 will confirm that wave iv has completed and wave v to below 123.99 is unfolding. This should be the final decline in the series from the 156.61 and set the stage for a new strong rally back to at least 156.61 and possibly higher.

For now, stay focused on minor support at 132.70 and more importantly support at 132.10 as the trigger for the onset of the final decline to below 123.99.

R3: 135.50

R2: 135.05

R1 134.72

Pivot: 134.40

S1: 133.45

S2: 132.70

S1: 132.10

Trading recommendation:

We are short GBP from 134.45 with our stop placed at 135.45