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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.

EURUSD Technical analysis JP Morgan October November 2014 breakouts needed

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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