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Pound still vulnerable vs USD, JPY, CHF - JPMorgan

FXStreet (Bali) - Despite the latest bounces, in view of Thomas Anthonj, FX Strategist at JP Morgan, the British Pound remains vulnerable against USD, JPY and CHF.

Key Quotes

"The latest recoveries of the British Pound against USD, JPY and CHF are far too short to really dent the still prevailing down bias on bigger scale. For the latter to be the case GBP/JPY would have to clear 177.73 (int. 76.4 %), GBP/CHF 1.5409/35 (minor 76.4 %/left shoulder) and GBP/USD would have to break above 1.6228 (pivot)."

"Below these key-barriers the GBP bears remain in control and lower supports between 1.5854 and 1.5752 (pivots) in GBP/USD, at 163.88 and at 157.07/156.50 (pivot/int. 38.2 % on 2 scales) in GBP/JPY and at 1.4967 (int. 38.2 %) in GBP/CHF remain at risk."

"On the upside we particularly keep watching key-resistance between 1.6178 and 1.6228 (daily trend/pivot) in GBP/USD as a break above would call for a broader recovery to at least 1.6525/33 (pivot/int. 50 %), whereas a break above 1.5409/35 in GBP/CHF would reopen the upside for a potential extension to the main T junction on big scale at 1.6634 (38.2 % on highest scale)."

"In terms of EUR/GBP and given the failure to clear 0.8009/12 (minor 38.2 %/daily Ichimoku-lagging) on daily close (10pm CET), we still see a negative bias prevailing and 0.7755/44 (2012 low/50 %) as well as 0.7694 (pivot) in focus. Only above 0.8012 and ultimately above 0.8054/66 (daily trend/pivot), we’d expect a stronger recovery for a test of the main T-junction at 0.8150 (int. 38.2 % on higher scale)."

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