GBP/USD: A much deeper setback has been launched - JPMorgan

By FXstreet.com | Updated August 04, 2014 AAA

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.



Key Quotes



"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."



Related Forex Analysis
  1. Weekly Forecast: FX Volatility to Persist on Key Data, Rate Decisions
    Forex News

    Weekly Forecast: FX Volatility to Persist on Key Data, Rate Decisions

  2. British Pound Holds on by a Thread - What to Watch in Week Ahead
    Forex News

    British Pound Holds on by a Thread - What to Watch in Week Ahead

  3. GBP/USD bounces at 1.5940 and returns to 1.5990
    Forex News

    GBP/USD bounces at 1.5940 and returns to 1.5990

  4. GBP/USD slumps to 1.5950
    Forex News

    GBP/USD slumps to 1.5950

  5. GBP/USD retreats from above 1.6000
    Forex News

    GBP/USD retreats from above 1.6000

Trading Center