17 Mar 2015
EUR/GBP sees recovery potential – JPM
FXStreet (Barcelona) - Thomas Anthonj, FX Strategist at J.P.Morgan, shares the technical view on cable and EUR/GBP, expecting the latter to a potential recovery towards 0.7343, 0.7394/0..7406 levels.
Key Quotes
“The British Pound has started to weaken across the board in line with the first polls coming in, which show how uncertain the prospects for the next 5 years will be. Cable has in this context already broken the 2013 low at 1.4813 which opened the door for a minimum extension into the next major support zone between 1.4374 and 1.4228 (76.4 %/2010 low).”
“We are nevertheless keeping a close eye on a minor 38.2 % retracement (currently at 1.4997) as a decisive hourly close above (i.e. above 1.5025) would increase the risk of having completed the whole 5-wave cycle down from 1.7192. This would only be confirmed via a decisive break above 1.5404 (int. 38.2 %) though.”
“As for EUR/GBP we see recovery potential to internal 38.2 % Fibonacci-retracements on different scales between 0.7343, 0.7394/0.7406 and 0.7686.”
“But particularly below 0.7343, the risk of extending to projected wave 3 targets at 0.6906 and at 0.6664 remains high.”
Key Quotes
“The British Pound has started to weaken across the board in line with the first polls coming in, which show how uncertain the prospects for the next 5 years will be. Cable has in this context already broken the 2013 low at 1.4813 which opened the door for a minimum extension into the next major support zone between 1.4374 and 1.4228 (76.4 %/2010 low).”
“We are nevertheless keeping a close eye on a minor 38.2 % retracement (currently at 1.4997) as a decisive hourly close above (i.e. above 1.5025) would increase the risk of having completed the whole 5-wave cycle down from 1.7192. This would only be confirmed via a decisive break above 1.5404 (int. 38.2 %) though.”
“As for EUR/GBP we see recovery potential to internal 38.2 % Fibonacci-retracements on different scales between 0.7343, 0.7394/0.7406 and 0.7686.”
“But particularly below 0.7343, the risk of extending to projected wave 3 targets at 0.6906 and at 0.6664 remains high.”