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18 Mar 2014
Flash: GBP/USD setback risk remains high - JPMorgan
FXStreet (Bali) - Above 1.6545, the 2009 high at 1.7044 in GBP/USD stays in focus but setback risk remains high, notes Thomas Anthonj, FX Strategist at JP Morgan.
Key Quotes
"The risks of running into a stronger GBP setback have increased but key-support is holding so far."
"Cable’s failure to trigger any follow-up after the break above the 2011 high at 1.6748 and the latest failure to break decisively above 1.6767 (minor 76.4 %) inherits the great risk of at least re-testing 1.6245/1.6166 (weekly breakout line/minor 38.2 %)."
"A break below 1.6545 (hourly trend channel) would most likely provide the initial spark for such a setback whereas below 1.6166 we'd see 1.5818 (int. 50 %) and 1.5288 (int. 76.4 %) in focus."
Key Quotes
"The risks of running into a stronger GBP setback have increased but key-support is holding so far."
"Cable’s failure to trigger any follow-up after the break above the 2011 high at 1.6748 and the latest failure to break decisively above 1.6767 (minor 76.4 %) inherits the great risk of at least re-testing 1.6245/1.6166 (weekly breakout line/minor 38.2 %)."
"A break below 1.6545 (hourly trend channel) would most likely provide the initial spark for such a setback whereas below 1.6166 we'd see 1.5818 (int. 50 %) and 1.5288 (int. 76.4 %) in focus."