GBP/JPY - Japanese yen proved to be weaker side of the cross as pound traders managed to keep the GBP/JPY within a large upward sloping channel that continues to dominate the price action since July. A sustained momentum on the part of the pound longs coupled with a break above 208.14, a level marked the 2005 High, will most likely see the cross continue to head higher and aim toward the psychologically important 210.00 handle. A move higher will most likely see the pound test the yen bids around 212.16, a 1.236 Fib Extension of the Jan/May GBP rally and confirm a massive breakout out if the 189.88-208.12 consolidation range that the cross was confined in since the beginning of 2004. Indicators are signaling trendless conditions with ADX below 25, while both momentum indicator and positive MACD treading above the zero line, with both neutral oscillators giving either side enough room to maneuver.

GBP/CHF - Swiss Franc once again failed to push the sterling bulls below the psychologically important 2.2500 handle as the cross continued to swing within a shirking triangle. As pound bulls push the cross higher, a move above 2.2827, a level marked by the 50.0 Fib of the 2.3310-2.2345 CHF rally will most likely see the cross test the triangle's upper boundary which will decide the long-term direction the GBP/CHF will take after the collapse of the consolidation range. A failure to breakout will confirm the overall dominance of the price action by the Swiss Franc longs and will most likely see the pound bulls give up the 2.2713, a 38.2 Fib of the 2.3310-2.2345 CHF rally followed by the break of the triangle's lower boundary. 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 remained the dominant side of the cross as GBP/AUD continues to swing within a large triangle that dominated the price action since September. A further move to the downside will most likely see the Aussie bulls push below 2.3159, a level established by the October 13 daily low, and make their way toward the 2.2991, a strong support due to a combination of the psychologically important 2.3000 handle and the October 4 daily low, which is marked by the Sep-Oct swing low and a morning star reversal pattern. Indicators are signaling trendless conditions with ADX below 25, while both the momentum indicator and negative MACD treading below the zero line, with oversold Stochastic giving the cable longs a chance to retaliate.

Sam Shenker is a Technical Currency Analyst for FXCM.