GBP/JPY - Cable bulls retaliated in force after the surprise counterattack by the Japanese yen longs knocked the cross below the psychologically important 205.00 handle. As pound longs recover and once again push the yen longs toward the 208.22, a level marked by 2005 high, a second trip above the 208.00 figure will most likely see the pound bulls lose their footing and once again tumble toward the psychologically important 205.00 handle. A further move to the downside will most likely see the Japanese yen longs push their way toward the 203.81, a level established by the November 9 daily low, thus breaking below the 23.6 Fib of the 192.67-208.22 GBP rally. Indicators are signaling trending conditions with ADX above 25, a 26.27, signaling an existence of a maturing trend, not a direction of one, while momentum indicator and positive MACD above the zero line, with both neutral oscillators giving either side enough room to maneuver.

GBP/CHF - Swiss Franc bulls continued to keep the attacking pound longs at bay as the price action remained confined to a narrow trading range, strangled by the 200-day SMA at 2.2677 and 2.2883, a level marked 23.6 Fib of the 2.1471-2.3311 GBP rally. Another attempt by the cable longs to take on the triangle's upper boundary will most likely see the pound longs lose momentum and with subsequent reversal seeing the cross head toward the sterling defenses around 2.2785, a level established by the 20-day SMA. A further move to the downside will most likely see the cross test the bids around 2.2677, a 200-day SMA.  Indicators are favoring the pound longs with both momentum indicator and positive MACD above the zero line. Oscillators remain neutral, thus giving either side enough room to maneuver. 

GBP/AUD - Australian dollar bulls continued to retreat under the onslaught by the British pound longs as the cross broke above the downward sloping channel's upper boundary. As cable longs continue to advance against the Aussie positions, a further move to the upside will most likely see the cross test the Australian dollar defenses around 2.4175, a level marked by the key 50.0 Fib of the 2.5672-2.2692 AUD rally. A further move to the upside will most likely see the sterling longs pound their way toward 2.4524, a level established by the 61.8 Fib of the 2.5672-2.2692 AUD rally Indicators are signaling trending conditions with ADX above 25, a 28.08, signaling an existence of a trend, not a direction of one, while momentum indicator and positive MACD are above the zero line, with both neutral oscillators giving either side enough room to maneuver.

Sam Shenker is a Technical Currency Analyst for FXCM.