Forex Flash: GBP remains a mixed bag against USD, EUR and CHF – JPMorgan
FXstreet.com (Barcelona) - Niall O'Conner, Global FX Strategist for JPMorgan has taken a look at GBP's prospects from a purely technical perspective.
O'Conner begins by noting that a fairly mixed performance in the past few weeks has particularly increased the setback risks against USD, CHF and EUR. The later remains high as long as Cable trades below the key T-zone between 1.6182/96 and 1.6390/6468 and would certainly manifest on a break below 1.5909/5876.
He believes that only a decisive break above 1.6196 would delay this risk in favour of an extension to the main T-junction on a big scale at 1.6390/6468 where the long term down trend would be under serious threat. He notes that the risk of losing substantial ground also persists against CHF and EUR where GBPCHF is struggling hard to defend key support between 1.4880 and 1.4822, and EURGBP threatens to take out key resistance between 0.8147/67/87.
Breaks of these T-junctions would end the safe haven status of GBP and would open substantial downside to at least 1.4354/4178 in GBPCHF and to 0.8691/8771 in EURGBP. As for GBP/Commodity FX, O'Conner feels that the picture remains blurry for the moment as we are pretty much caught in the midst of broader trading ranges.
O'Conner begins by noting that a fairly mixed performance in the past few weeks has particularly increased the setback risks against USD, CHF and EUR. The later remains high as long as Cable trades below the key T-zone between 1.6182/96 and 1.6390/6468 and would certainly manifest on a break below 1.5909/5876.
He believes that only a decisive break above 1.6196 would delay this risk in favour of an extension to the main T-junction on a big scale at 1.6390/6468 where the long term down trend would be under serious threat. He notes that the risk of losing substantial ground also persists against CHF and EUR where GBPCHF is struggling hard to defend key support between 1.4880 and 1.4822, and EURGBP threatens to take out key resistance between 0.8147/67/87.
Breaks of these T-junctions would end the safe haven status of GBP and would open substantial downside to at least 1.4354/4178 in GBPCHF and to 0.8691/8771 in EURGBP. As for GBP/Commodity FX, O'Conner feels that the picture remains blurry for the moment as we are pretty much caught in the midst of broader trading ranges.
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