What are the next directions for EUR/USD and GBP/USD? Breakouts are needed in current ranges, but there is a clear direction.
The team at JP Morgan explains the levels for both currency pairs:
Here is their view, courtesy of eFXnews:
No clarification yet in EUR/USD as key-support at 1.2605/1.2592 (pivot/minor 76.4 %) has not even been scratched yet, which however also applies for the now relevant resistance cluster at 1.2697/1.2706 (minor 38.2 %/pivot), notes JP Morgan.
“Only a breakout of this range would now provide an early indication whether we can expect another corrective leg up (wave c) towards the upper T-junction at 1.2959 (int. 38.2 %) or the straight resumption of the broader downtrend next,†JPM adds.
“Towards 1.2959 though, we’d see a very good risk reward given to re-establish a strategic short position,†JPM advises.
Same goes for cable, according to JPM, where the range trading affair goes on without giving us the final hint yet whether another up-swing might be missing or whether the broader downtrend has already been resumed.
“That said we need a range breakout between 1.5948/44 (minor 76.4 %/pivot) or a break above hourly neckline resistance (currently at 1.6170) to receive an early indication whether we are heading towards 1.6525/33 (pivot/int. 50 %) or for a test and possible break below key-pivotal support between 1.5852 and 1.5752 next,†JPM argues.
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