21 Nov 2013
Flash: It is make or break for the British Pound - JPMorgan
FXstreet.com (Barcelona) - GBP faces key resistances vs USD, JPY and CHF, notes Thomas Anthonj, FX Strategist at JP Morgan.
Key Quotes
"Despite the remarkable recovery of the British Pound we still have to be careful with the latter as the sell-off risks against FX majors like USD, JPY and CHF have not been eliminated yet."
"For this to be the case it takes breaks above major resistance barriers at 162.22/163.11/164.41 (Fib.-projection/pivot/int. 38.2 %) in GBP/JPY, at 1.4814/21 (double-top) in GBP/CHF, and between 1.6163 (minor 76.4 %) and 1.6308/79 (m. trend/last major top) in Cable."
"Only such breaks would open extended upside potential to at least 1.5128 (int. 76.4 %) in GBP/CHF, and fairly significant upside in GBP/JPY to 183.98 (50 % on big scale) and to 1.7332 (2009 high) and 1.7768 (C = A) in Cable."
"Breaks below 1.5819 (int. 38.2 %) in Cable, below 1.4563 (last intra-day low) in GBP/CHF or below 160.16 (minor 38.2 %) in GBP/JPY would on the other hand confirm intermediate tops in place which would re-open the downside for a straight extension to a support zone between 1.5537/01 (int. 50 %/200 DMA) and 1.5436/22 (pivots) if not to 1.5155/02 (76.4 %/pivot) in Cable."
Key Quotes
"Despite the remarkable recovery of the British Pound we still have to be careful with the latter as the sell-off risks against FX majors like USD, JPY and CHF have not been eliminated yet."
"For this to be the case it takes breaks above major resistance barriers at 162.22/163.11/164.41 (Fib.-projection/pivot/int. 38.2 %) in GBP/JPY, at 1.4814/21 (double-top) in GBP/CHF, and between 1.6163 (minor 76.4 %) and 1.6308/79 (m. trend/last major top) in Cable."
"Only such breaks would open extended upside potential to at least 1.5128 (int. 76.4 %) in GBP/CHF, and fairly significant upside in GBP/JPY to 183.98 (50 % on big scale) and to 1.7332 (2009 high) and 1.7768 (C = A) in Cable."
"Breaks below 1.5819 (int. 38.2 %) in Cable, below 1.4563 (last intra-day low) in GBP/CHF or below 160.16 (minor 38.2 %) in GBP/JPY would on the other hand confirm intermediate tops in place which would re-open the downside for a straight extension to a support zone between 1.5537/01 (int. 50 %/200 DMA) and 1.5436/22 (pivots) if not to 1.5155/02 (76.4 %/pivot) in Cable."