In GBP/USD, JPM thinks that last week’s upside breakout is generally bullish and suggests that the upside is now wide open for a re-test of the 2009 high at 1.7044.
This, according to JPM, holds true as long as 1.6613 (minor 38.2 %) is not broken decisively on hourly close (i.e. below 1.6580)
“Such a break would indicate that a broader 5-wave cycle from 1.4813 could be complete, which would call for a much broader setback to at least 1.6255/20 (weekly breakout line/pivot) if not to 1.6117 (int. 38.2 %),” JPM warns.
