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Recent market movements have created interesting patterns in both EUR/USD and GBP/USD.

What are the next levels in both currency pairs? JP Morgan answers:

Here is their view, courtesy of eFXnews:

Having decisively broken key-Fib.-support at 1.2592 (minor 76.4 %), JP Morgan now sees the odds in favor of a straight resumption of the broader downtrend, but the risk of only dealing with an overshooting countertrend decline persists.

That said, JPM thinks that a decisive break back below 1.2502/00 (76.4 % on higher scale) would confirm lower targets at 1.2418 and 1.2218 (Fib.-proj./w. trend).

We nevertheless see a negative bias prevailing as long as the hourly lagging line doesn’t display two consecutive higher closes above Ichimoku-resistance (currently at 1.2729),” JPM argues.

EURUSD key technical levels November analysis fibo lines

In Cable, JPM notes the market keeps on defending key-support at 1.5948/44 (minor 76.4 %/pivot) which keeps the inverted H & S bottoming pattern in the game and the door for a broader recovery open.

“For the latter to receive additional support though, it would now take breaks above hourly Ichimoku-resistance with the lagging line (now at 1.6136) and ultimately breaks above pivotal resistance between 1.6186 and 1.6228,” JPM projects.

A break below 1.5944 would on the other hand challenge 1.5854 and 1.5752 (pivots), if not 1.5374 (76.4 %),” JPM adds.

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