28 Apr 2015
GBP/USD bearish below 1.5314/68 – JP Morgan
FXStreet (Edinburgh) - The prospects for the sterling remains on the bearish side as long as GBP/USD keeps the trade below the 1.5314/68 band.
Key Quotes
“The British Pound remains volatile ahead of the May elections, but seems to have overshot in terms of discounting negative expectations”.
“That said, Cable already broke the row of lower tops at 1.4983, which freed the way for a stronger recovery to the first major T-zone between 1.5314 (int. 38.2 %) and 1.5368 (daily Ichimoku-lagging)”.
“It would take two consecutive higher daily closes of the red lagging line above the latter to suggest that the 5-wave down-cycle from 1.7192 to 1.4565 has been completed”.
“Such a break would call for a much broader recovery to 1.5878 (50 %) with interim resistance in between at 1.5555 (February high)”.
“Below 1.5314/68 though, the big picture remains negative and lower targets at 1.4374 and 1.4228 (76.4 %/2010 low) on the radar”.
“It would take breaks below 1.4856 (pivot) and 1.4709 (minor 76.4 %) though, to resume the long-term downtrend”.
Key Quotes
“The British Pound remains volatile ahead of the May elections, but seems to have overshot in terms of discounting negative expectations”.
“That said, Cable already broke the row of lower tops at 1.4983, which freed the way for a stronger recovery to the first major T-zone between 1.5314 (int. 38.2 %) and 1.5368 (daily Ichimoku-lagging)”.
“It would take two consecutive higher daily closes of the red lagging line above the latter to suggest that the 5-wave down-cycle from 1.7192 to 1.4565 has been completed”.
“Such a break would call for a much broader recovery to 1.5878 (50 %) with interim resistance in between at 1.5555 (February high)”.
“Below 1.5314/68 though, the big picture remains negative and lower targets at 1.4374 and 1.4228 (76.4 %/2010 low) on the radar”.
“It would take breaks below 1.4856 (pivot) and 1.4709 (minor 76.4 %) though, to resume the long-term downtrend”.