FXStreet (Bali) - The broader GBP up-trend has been dented and looks to be due for a broader setback, notes Thomas Anthonj, FX Strategist at JP Morgan.
"Falling short of coming anywhere close to the next higher resistance barrier at 1.7332 (50 %/monthly Ichimoku- lagging), Cable started retreating and broke below first support between 1.7003 (minor 38.2 %) and 1.6914 (daily trend, now resistance)."
"This weakens the bullish outlook and opened the door for a broader setback to 1.6394 (int. 38.2 % on higher scale) if not to 1.6178 (weekly breakout line)."
"Only a break above 1.7105 (minor 76.4 %) would brighten the picture, whereas breaks below 1.6695/30 (pivot/200 DMA) would reaffirm the temporary bear view."