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1 Oct 2013
Flash: Downside risks for GBP/USD remains particularly high - JPMorgan
FXstreet.com (Barcelona) - While the recovery in Cable looks fairly constructive, looking at the big picture, it still takes a break above 1.6325/37/79 to really dent the long-term downtrend, notes Thomas Anthonj, FX Strategist at JP Morgan.
Key Quotes
"Below, a major top is expected to form in preparation of the resumption of the broader downtrend. For a top to be confirmed it now takes breaks below internal 38.2 % retracements on different scale at 1.5883 and at 1.5758."
"That said we established a strategic short on current levels (1.6110) and intend to add up at 1.6300 or on a break below 1.5750, combined with a stop at 1.6400 to participate in the expected decline to the last good support at 1.5132 (minor 76.4 %) with the option to extend to 1.4339 (76.4 % on big scale)."
Key Quotes
"Below, a major top is expected to form in preparation of the resumption of the broader downtrend. For a top to be confirmed it now takes breaks below internal 38.2 % retracements on different scale at 1.5883 and at 1.5758."
"That said we established a strategic short on current levels (1.6110) and intend to add up at 1.6300 or on a break below 1.5750, combined with a stop at 1.6400 to participate in the expected decline to the last good support at 1.5132 (minor 76.4 %) with the option to extend to 1.4339 (76.4 % on big scale)."