GBP/JPY - Japanese yen traders lost control of the price action as pound bulls pushed the GBP/JPY above the psychologically important 205.00 handle, a level defended by the key 38.2 Fib of the 192.67-213.06 GBP rally and 50-day SMA. A further move to the upside will most likely see cable longs test Japanese Yen offers around 208.29, a level established by the 23.6 Fib of the 192.67-213.06 GBP rally, with sustained momentum the upside seeing cross aim for 211.40, a level marked by the December 6 daily high, thus seeing GBP/JPY break above the psychologically important 210.00 handle. A further momentum on the part of the sterling bulls will most likely see the cross head higher and yen levels around 213.10, a level marked by the December 13 daily high, thus seeing pound traders once again test the multi-year high. 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 continued to keep the cross in a range bound mode as GBP/CHF once again approached 2.2609, a level established by the 38.2 Fib of the 2.1469-2.3307 GBP rally. As sterling traders continue to dominate the price action, a further move to the upside will most likely see the cross head higher and with a move above 2.2665, a level marked by the 50-day SMA target the cable bids around 2.2759, a level established by the 200-day SMA. A further move on the part of cable longs will most likely see the cross advance further and aim for 2.2873, a level defended by the 23.6 Fib of the 2.1469-2.3307 GBP rally. A sustained momentum on the part of the Swiss Franc bulls will most likely see cross target the psychologically important 2.3000 handle, a level defended by the December 20 daily high at 2.3019. 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 longs once again failed to push the cross above 2.3835, a level defended by 50.0 Fib of the 2.5672-2.2692 AUD rally. As sterling longs give up ground to the Australian dollar longs, a further move to the downside will most likely see the cross target sterling bids around 2.3565, a level established by the 38.2 Fib of the 2.5672-2.2692 AUD rally, which currently acts as a gateway toward the psychologically important 2.3500 handle. A sustained momentum on the part of the Aussie longs will most likely see GBP/AUD head below 2.3232, a level established by the key 23.6 Fib of the 2.5672-2.2692 AUD rally, 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.