17 Jan 2014
Flash: GBP/USD, odds shifted for 1.6748 and 1.7044 - JPMorgan
FXstreet.com (Bali) - GBP/USD technicals are pointing to higher levels, with an initial target of 1.7044 ahead of 1.7332 and 1.7768 long term projected, notes JP Morgan FX Strategist Team.
Key Quotes
"Having decisively broken the main T-zone on big scale at 1.6275/1.6379 (weekly trend/last top) the odds have shifted in favor of a break above former highs at 1.6748 and at 1.7044 to then extend to 1.7332 (50 %) and to 1.7768 (C = A).
"Only a rebreak below 1.6275 would weaken this bullish outlook but in order to really endanger the bullish trend it would now take a decisive break below 1.6031 (minor 38.2 %)."
"Such a break would call for a much deeper 2nd wave setback to 1.5709 (int. 50 %) and to 1.5236 (int. 76.4 %) at a later stage."
Key Quotes
"Having decisively broken the main T-zone on big scale at 1.6275/1.6379 (weekly trend/last top) the odds have shifted in favor of a break above former highs at 1.6748 and at 1.7044 to then extend to 1.7332 (50 %) and to 1.7768 (C = A).
"Only a rebreak below 1.6275 would weaken this bullish outlook but in order to really endanger the bullish trend it would now take a decisive break below 1.6031 (minor 38.2 %)."
"Such a break would call for a much deeper 2nd wave setback to 1.5709 (int. 50 %) and to 1.5236 (int. 76.4 %) at a later stage."