In Cable, JP Morgan notes that following the latest and decisive break below the 200 DMA (now resistance at 1.6695), the bears still in full control, shooting for an extension towards 1.6394 (int. 38.2 %).
“But having managed to break above Ichimoku-resistance with the hourly lagging line we see the door for a temporary bounce to 1.6695 or 1.6738 (200 DMA/minor 38.2 %) as open,'” JP Morgan warns.
“Only above the latter we’d see extended recovery potential (wave 2 or wave b) to 1.7023/32 (daily breakout line/(int. 76.4 %),” JPM adds.
