GBP/JPY - Japanese yen traders continued to dominate the price action as they pushed the GBP/JPY toward the psychologically important 200.00 handle, a level defended by the key 61.8 Fib of the 192.67-213.06 GBP rally at 200.52. A sustained momentum to the downside will most likely see yen longs test cable bids around 198.95, a level established by the September 30 daily low, with further move to the downside aiming for 197.09, a level marked by the 78.6 Fib of the 192.67-213.06 GBP rally. A further momentum on the part of the Japanese Yen longs will most likely see the cross extend its decline below the psychologically important 195.00 handle and target pound bids around 194.56, a level marked by the July 8 daily low. Indicators are favoring Japanese Yen longs with both negative momentum indicator is and MACD below the zero line, while neutral oscillators give either side enough room to maneuver. 

GBP/CHF - Cable longs managed to recover some ground previously lost to the advancing Swiss Franc longs as cross tested bids around the psychologically important 2.2500 handle. As Swissie traders continue to dominate the overall price action, the next move to the downside will most likely see GBP/CHF head lower and with a move below 2.2500 target the cable bids around 2.2344, a level established by the July 20 daily low. A further move on the part of Swissie longs will most likely see the cross retreat further and aim for 2.2171, a level marked by the key 61.8 Fib of the 2.1469-2.3307 GBP rally. A sustained momentum on the part of the Swiss Franc bulls will most likely see GBP/CHF target the psychologically important 2.2000 handle, a level defended by February 24 daily low at 2.2075. Indicators are favoring the Swiss Franc longs with both momentum indicator and negative MACD below the zero line, while oversold Stochastic gives sterling longs a chance to retaliate.

GBP/AUD - Pound traders lost the control of the price action as cross fell below the psychologically important 2.3500 handle after tumbling through the 38.2 Fib of the 2.5672-2.2692 AUD rally at 2.3569. A further move to the downside will most likely see the cross head below 2.3232, a level established by the key 23.6 Fib of the 2.5672-2.2692 AUD rally. A sustained momentum to the downside will most likely see the cross head lower and with a break below the psychologically important 2.3000 handle, a level defended by the December 6 daily low at 2.3013 most likely seeing GBPAUD head lower and target pound offers around 2.2690, a level established by the 2005 Low. Indicators are favoring Australian dollar longs, with both negative momentum indicator and negative MACD treading below the zero line, while oversold Stochastic gives sterling longs a chance to retaliate.

Sam Shenker is a Technical Currency Analyst for FXCM.