In GBP/USD, JP Morgan notes that the latest break below daily trend line support (now resistance at 1.6781) delivered additional evidence that a broader setback towards 1.6274/05 (int. 38.2 %/weekly breakout line) is already on its way.
“Interim support however cuts in at 1.6657 (c = A) and at 1.6493 (minor wave 3 projection) whereas particularly the latter and the 200 DMA at 1.6402 could trigger a temporary bounce,” JP Morgan notes.
“In general we are fairly confident of dealing with a broader setback to 1.6274/05, which would only be questioned via a break above 1.6869 (minor 76.4 %),” JP Morgan argues.
