26 Sep 2013
Flash: GBP/USD rally is no game change until above 1.6328/37 - JPMorgan
FXstreet.com (Barcelona) - According to JPMorgan FX Strategists, for the GBP/USD trend to transition from a sustained impulsive rise into a game change on big scale, it still takes a break above 1.6328/37, an area over 250+ pips from current levels.
Key Quotes
"Based on the very negative implications received from the break below monthly triangle support in Cable 7 months ago, we remain skeptical whether the market is going to succeed in confirming a game change."
"For the latter to be indicated and in order to establish a broader up-trend it still takes a break above massive resistance at 1.6328/37/79 (upper weekly monthly triangle/Dec. 12 high)."
"Breaks below 1.5883 and 1.5758 (minor 38.2 % on 2 scales) would on the other hand signal that a deeper setback to 1.5132/02 (int. 76.4 %/pivot) or the resumption of the long-term downtrend towards the T-zone on big scale between 1.4339 and 1.4228(76.4 %/2010 low) is on its way."
"In the short-run, we are now focusing on 1.6328/37/79 and on the first crucial support at 1.5883/1.5758 (minor 38.2 % on2 scales) as a breakout of this range would either call for a straight extension to 1.6748 and 1.7044 (former highs) or a straight sell-off to key-supports between 1.5487/36/29 (200 DMA/pivots)."
Key Quotes
"Based on the very negative implications received from the break below monthly triangle support in Cable 7 months ago, we remain skeptical whether the market is going to succeed in confirming a game change."
"For the latter to be indicated and in order to establish a broader up-trend it still takes a break above massive resistance at 1.6328/37/79 (upper weekly monthly triangle/Dec. 12 high)."
"Breaks below 1.5883 and 1.5758 (minor 38.2 % on 2 scales) would on the other hand signal that a deeper setback to 1.5132/02 (int. 76.4 %/pivot) or the resumption of the long-term downtrend towards the T-zone on big scale between 1.4339 and 1.4228(76.4 %/2010 low) is on its way."
"In the short-run, we are now focusing on 1.6328/37/79 and on the first crucial support at 1.5883/1.5758 (minor 38.2 % on2 scales) as a breakout of this range would either call for a straight extension to 1.6748 and 1.7044 (former highs) or a straight sell-off to key-supports between 1.5487/36/29 (200 DMA/pivots)."