Back
17 Apr 2014
GBP/USD looks set for trend extension to 1.7044/49 - JPMorgan
FXStreet (Bali) - According to Paul Meggyesi and Thomas Anthonj, FX Strategist at JP Morgan, GBP/USD is well positioned to extend gains towards its key-pivotal resistance at 1.7044/49 (2009 high) ahead of 1.7332.
Key Quotes
"The bullish triangle breakout last November and the successful defense of triangle support (now at 1.6232) thereafter kept the odds in favor of an extension to key-pivotal resistance at 1.7044/49 (2009 high) if not to 1.7332 (50 %). It however takes a break above 1.6824 (last top) to eliminate the risk of having just formed a double-top."
"Below, we might have just seen an overshooting countertrend rally or a failed 5th which inherits the risk of missing a minimum sell-off to 1.6232 and to 1.6166 (minor 38. %). A break above 1.7049 would on the other hand expose 1.7332 (50 %/monthly Ichimoku-lagging) which looks massive and should cap the upside for some time."
"In the short-run, we are now focusing on an inner range between 1.6824 (pivots) and 1.6548 (daily trend) as a breakout of this range would provide early indications whether the broader up-trend has been resumed or whether we are facing a stronger setback to at least 1.6387 (minor 76.4 %)."
Key Quotes
"The bullish triangle breakout last November and the successful defense of triangle support (now at 1.6232) thereafter kept the odds in favor of an extension to key-pivotal resistance at 1.7044/49 (2009 high) if not to 1.7332 (50 %). It however takes a break above 1.6824 (last top) to eliminate the risk of having just formed a double-top."
"Below, we might have just seen an overshooting countertrend rally or a failed 5th which inherits the risk of missing a minimum sell-off to 1.6232 and to 1.6166 (minor 38. %). A break above 1.7049 would on the other hand expose 1.7332 (50 %/monthly Ichimoku-lagging) which looks massive and should cap the upside for some time."
"In the short-run, we are now focusing on an inner range between 1.6824 (pivots) and 1.6548 (daily trend) as a breakout of this range would provide early indications whether the broader up-trend has been resumed or whether we are facing a stronger setback to at least 1.6387 (minor 76.4 %)."