GBP/JPY - Japanese yen traders continued to retreat as pound bulls pushed the GBP/JPY above the psychologically important 210.00 handle and set their sights on 211.40, a level marked by the December 6 daily high. 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. A breakout above will most likely see the cross extend its gains and with a move above the next psychologically important 215.00 figure most likely targeting the 216.68, a level marked by the 78.6 Fib Extension of the Jul-Dec GBP rally. Indicators are favoring British pound longs with both positive momentum indicator is and MACD above the zero line, ADX above 25 at 26.48 signals an existence of a trend, not a direction of one, with both overbought oscillators adding to the trending outlook. 

GBP/CHF - British pound longs continued to keep the cross in a tight trading range as GBP/CHF once again approached 2.2759, a level established by the 61.8 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 the psychologically important 2.3000 handle, a level defended by the December 20 daily high at 2.3019, most likely see the sterling bulls gain further upside momentum. A further move to the upside will most likely see the GBP/CHF head higher and aim for the Swiss Franc offers around 2.3104, a level marked by the 78.6 Fib of the 2.1469-2.3307 GBP rally, breaking of which will most likely open 2.3310 as a target of opportunity. Indicators are favoring the Swiss Franc longs with both momentum indicator and negative MACD below the zero line, while overbought Stochastic gives Swiss Franc traders a chance to retaliate.

GBP/AUD - Pound longs continued to keep the cross in narrow trading range as price action stalled around 2.3600 figure, a level defended by the combination of 20-day, 50-day and 200-day SMA's. As sterling bulls give push the pair higher, a further move to the upside will most likely see the cross target Aussie offers around 2.3820, 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 2.4000 handle. A sustained momentum on the part of the pound longs will most likely see GBP/AUD head above 2.4111, a level established by the key 50.0 Fib of the 2.5672-2.2692 AUD rally, and with a break above the psychologically important 2.4500 handle, a level defended by the 61.8 Fib of the 2.5672-2.2692 AUD rally most likely seeing GBPAUD head higher and target Australian dollar offers around 2.4814, a level established by the April 19 daily high. Indicators are favoring Australian dollar longs, with both negative momentum indicator and negative MACD treading below the zero line, while neutral oscillators give either side enough room to maneuver.

Sam Shenker is a Technical Currency Analyst for FXCM.