28 Apr 2015
GBP/USD: Break above 1.5314/68 needed to dent LT bear trend - JPMorgan
FXStreet (Bali) - Thomas Anthonj, FX Strategist at JP Morgan, notes that a break above 1.5314/68 in GBP/USD is needed to dent the intact long-term downtrend.
Key Quotes
"The British Pound remains volatile ahead of the May elections, but seems to have overshot in terms of discounting negative expectations.'
"That said, Cable already roke the row of lower tops at 1.4983, which freed the way for a stronger recovery to the first major T-zone between 1.5314 (int. 38.2 %) and 1.5368 (daily Ichimoku-lagging)."
"It would take two consecutive higher daily closes (10pm CET) of the red lagging line above the latter to suggest that the 5-wave down-cycle from 1.7192 to 1.4565 has been completed."
"Such a break would call for a much broader recovery to 1.5878 (50 %) with interim resistance in between at 1.5555 (February high)."
"Below 1.5314/68 though, the big picture remains negative and lower targets at 1.4374 and 1.4228 (76.4 %/2010 low) on the radar."
"It would take breaks below 1.4856 (pivot) and 1.4709 (minor 76.4 %) though, to resume the long-term downtrend."
Key Quotes
"The British Pound remains volatile ahead of the May elections, but seems to have overshot in terms of discounting negative expectations.'
"That said, Cable already roke the row of lower tops at 1.4983, which freed the way for a stronger recovery to the first major T-zone between 1.5314 (int. 38.2 %) and 1.5368 (daily Ichimoku-lagging)."
"It would take two consecutive higher daily closes (10pm CET) of the red lagging line above the latter to suggest that the 5-wave down-cycle from 1.7192 to 1.4565 has been completed."
"Such a break would call for a much broader recovery to 1.5878 (50 %) with interim resistance in between at 1.5555 (February high)."
"Below 1.5314/68 though, the big picture remains negative and lower targets at 1.4374 and 1.4228 (76.4 %/2010 low) on the radar."
"It would take breaks below 1.4856 (pivot) and 1.4709 (minor 76.4 %) though, to resume the long-term downtrend."