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14 May 2015
EUR/GBP still rangebound – JP Morgan
FXStreet (Edinburgh) - Analysts at JP Morgan believe a stronger catalyst is needed in order to break the current consolidation pattern in the cross.
Key Quotes
“As for EUR/GBP we received a bunch of mixed signals lately, which left us in the dark whether this price action is part of a broader recovery or of the still intact, long-term downtrend”.
“That said we are now looking for a range breakout between 0.7423 (minor 38.2 %) and 0.7204/0.7154 (minor 76.4 %/daily trend) in order to receive an early indication whether an extension up to the main T-junction at 0.7686 (int. 38.2 % on higher scale) or the resumption of the long-term downtrend can be expected next”.
“Below 0.7154 and the last low at 0.7117, the downside would be wide open again for an extension to wave 3 projections at 0.6906 and at 0.6664”.
“It would on the other hand take breaks above 0.7686 and above 0.7755 (2012 low) to confirm the reversal of the long-term downtrend”.
Key Quotes
“As for EUR/GBP we received a bunch of mixed signals lately, which left us in the dark whether this price action is part of a broader recovery or of the still intact, long-term downtrend”.
“That said we are now looking for a range breakout between 0.7423 (minor 38.2 %) and 0.7204/0.7154 (minor 76.4 %/daily trend) in order to receive an early indication whether an extension up to the main T-junction at 0.7686 (int. 38.2 % on higher scale) or the resumption of the long-term downtrend can be expected next”.
“Below 0.7154 and the last low at 0.7117, the downside would be wide open again for an extension to wave 3 projections at 0.6906 and at 0.6664”.
“It would on the other hand take breaks above 0.7686 and above 0.7755 (2012 low) to confirm the reversal of the long-term downtrend”.