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10 Sep 2013
Flash: GBP/USD, counter-trend rally in top looks to be in place at 1.5718 - JPMorgan
FXstreet.com (Barcelona) - Despite the steady gains in GBP/USD, according to Thomas Anthonj, FX Strategist at JP Morgan Securities, the big picture for GBP 'has hardly improved yet'.
Key Quotes
"A string of positive UK data led to an extended GBP recovery, but given the latest failures to clear previous highs at 1.5752 in Cable and at 156.77 in GBP/JPY, the good news looks discounted."
"That said the risk of accelerating down south is particularly high in Cable where a minimum setback to 1.4339 (76.4 %) if not the resumption of the pre-2009 downtrend is still a very realistic threat due to the triangle breakdown in February."
"Only a break above 1.5718/52 (last tops) would open the way for a re-test of weekly/monthly triangle resistance at 1.5916 to 1.6038."
"A break below 1.5496/34 (200 DMA/daily neckline) would end the idea of an upside extension but to confirm a minimum decline to 1.4339, it takes breaks below 1.5102 (pivot) and 1.5027 (minor 76.4 %)."
Key Quotes
"A string of positive UK data led to an extended GBP recovery, but given the latest failures to clear previous highs at 1.5752 in Cable and at 156.77 in GBP/JPY, the good news looks discounted."
"That said the risk of accelerating down south is particularly high in Cable where a minimum setback to 1.4339 (76.4 %) if not the resumption of the pre-2009 downtrend is still a very realistic threat due to the triangle breakdown in February."
"Only a break above 1.5718/52 (last tops) would open the way for a re-test of weekly/monthly triangle resistance at 1.5916 to 1.6038."
"A break below 1.5496/34 (200 DMA/daily neckline) would end the idea of an upside extension but to confirm a minimum decline to 1.4339, it takes breaks below 1.5102 (pivot) and 1.5027 (minor 76.4 %)."