We still expect that support at 137.65 will be able to protect the downside for more upside pressure towards 139.91 and 140.96 before the wave i is complete and a larger corrective decline begins.
Only a direct break below support at 137.65 will indicate a premature top for the wave i and the fact that the wave ii towards 134.07 is developing.
We will let you know that increased volatility is expected as the Brexit deal comes to a vote in the UK Parliament on Tuesday, January 14.
R3: 139.91
R2: 139.25
R1: 138.75
Pivot: 137.95
S1: 137.65
S2: 137.07
S3: 136.62
Trading recommendation:
We are long GBP from 134.65 with our stop placed at 137.50. After a break above 139.44, we will raise our stop order to 137.85.