GBP/JPY - Japanese yen traders regained the control of the price action and once again 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 and 200-day SMA. A further move 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 sustained downside momentum seeing cross aim 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 bulls will most likely see the GBP/JPY 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 - British pound longs once again found themselves on the offer side of the market as cross broke below 2.2609, a level established by the 38.2 Fib of the 2.1469-2.3307 GBP rally and headed toward the psychologically important 2.2500 handle. As Swissie traders continue to dominate the price action, the further move to the downside will most likely see GBP/CHF break lower and with a move below 2.2500 target the cable bids around 2.2391, a level established by the 50.0 Fib of the 2.1469-2.3307 GBP rally. A further move on the part of Swissie longs will most likely see the cross retreat further and aim for 2.2254, a level defended by the February 28, 2004 daily low. A sustained momentum on the part of the Swiss Franc bulls will most likely see cross target 2.2174, a level marked by the key 61.8 Fib of the 2.1469-2.3307 GBP rally, which currently acts as a gateway toward the psychologically important 2.2000 figure.  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 continued to engage their Australian dollar counterparts as price action remained within vicinity of the 38.2 Fib of the 2.5672-2.2692 AUD rally at 2.3569. As sterling longs begin to retreat, 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 GBP/AUD 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.