17 Jul 2014
GBP/USD has potential for 1.7332, 1.7768 - JPMorgan
FXStreet (Bali) - GBP/USD has the potential to launch an attack towards kei resistance at 1.7332 and 1.7768, notes JP Morgan.
Key Quotes
"The bullish implications from the triangle breakout last November have finally materialized and received an additional boost via last months break above key- pivotal resistance at 1.7044/49 (2009 high/2005 low).
"This opened fresh upside potential to massive resistance at 1.7332 (50 %/monthly Ichimoku-lagging/c=a) and another T-junction at 1.7768 (C = A on higher scale)."
"Setbacks could be severe, offering minimum down-potential to 1.6387 and possibly to 1.6102 (minor 38.2 %/weekly breakout line) with the option to extend to 1.5997 (int. 50 %) in case 1.6102 would fail to provide support."
"In the short-run, we are now focusing on a range breakout between 1.7332 and 1.6996 (minor 38.2 %) to receive an early indication whether the broader up- trend is going to be prolonged or whether the risk of running into a deeper setback is increasing. The latter would receive additional evidence via a break below daily trend line support at 1.6836."
Key Quotes
"The bullish implications from the triangle breakout last November have finally materialized and received an additional boost via last months break above key- pivotal resistance at 1.7044/49 (2009 high/2005 low).
"This opened fresh upside potential to massive resistance at 1.7332 (50 %/monthly Ichimoku-lagging/c=a) and another T-junction at 1.7768 (C = A on higher scale)."
"Setbacks could be severe, offering minimum down-potential to 1.6387 and possibly to 1.6102 (minor 38.2 %/weekly breakout line) with the option to extend to 1.5997 (int. 50 %) in case 1.6102 would fail to provide support."
"In the short-run, we are now focusing on a range breakout between 1.7332 and 1.6996 (minor 38.2 %) to receive an early indication whether the broader up- trend is going to be prolonged or whether the risk of running into a deeper setback is increasing. The latter would receive additional evidence via a break below daily trend line support at 1.6836."