25 Jul 2013
Flash: GBP/USD, violation of 1.48 suggest test of 1.4340/1.4200 - JPMorgan
FXstreet.com (Barcelona) - GBP/USD medium term bearish view should prevail, according to the FX Team at JP Morgan Securities.
Key quote
"Corrective retracements should be viewed as selling opportunities as the 1.5400/1.5530 zone acts as strong resistance. Violations of the 1.48 support zone and recent lows would confirm the medium term bearish backdrop suggesting an ultimate test of the 1.4340/1.4200 target zone which includes the 2010 low."
"Alternately, strength above the 1.5530 area would argue for a more protracted corrective phase and continuation of the broad range. Note this is the alternate view."
Key quote
"Corrective retracements should be viewed as selling opportunities as the 1.5400/1.5530 zone acts as strong resistance. Violations of the 1.48 support zone and recent lows would confirm the medium term bearish backdrop suggesting an ultimate test of the 1.4340/1.4200 target zone which includes the 2010 low."
"Alternately, strength above the 1.5530 area would argue for a more protracted corrective phase and continuation of the broad range. Note this is the alternate view."