GBP/JPY - British pound traders continued to keep the cross confined to a narrow trading range as GBP/JPY stalled below 205.26, a level defended by the combination of the 38.2 Fib of the 192.69-213.03 GBP rally and 50-day SMA's. As sterling bulls resume their advance and push the cross higher, a move above the psychologically important 205.00 handle will most likely see GBP/JPY target the yen offers at 206.86, a level marked by the November 15 daily high. A further move to the upside will most likely see cable longs extend their gain toward 208.28, a level established by the 23.6 Fib of the 192.69-213.03 GBP rally. However in case yen bulls manage to push the cross below 203.00 figure, a level defended by the combination of the 200-day SMA and 50.0 Fib of the 192.69-213.03 GBP rally, a further move to the downside will most likely see the cross extend its decline toward 201.71, a level marked by the February 27 daily high. Indicators are favoring yen longs with both negative momentum indicator andnegative MACD treading below the zero line; with neutral oscillators giving either side enough room to maneuver. 

GBP/CHF - As Swiss Franc longs remained in charge of the price action following the failure by the sterling bulls to recapture the psychologically important 2.3000 handle. As Swissie bulls push the pair below 2.2700, a level defended by the 38.2 Fib of the 2.1714-2.3310 GBP rally, a further move to the downside will most likely see GBP/CHF target 2.2512, a level 38.2 Fib of the 2.1714-2.3310 GBP rally. A sustained momentum on the part of the Swissie longs will most likely see GBP/CHF head below the psychologically important 2.2500 handle and target pound bids around 2.2323, a level protected by the 61.8 Fib of the 2.1714-2.3310 GBP rally. However in case sterling longs manage to push back the advancing Swiss Franc longs, a move above 2.2755, a level marked by the 50-day SMA will most li9kley see GBP/CHF extend its rally toward the 2.2933, a level defended by the 23.6 Fib of the 2.1714-2.3310 GBP rally. Indicators are mixed with positive momentum indicator diverging from negative MACD below the zero line, while neutral oscillators giving either side enough room to maneuver.

GBP/AUD - Pound longs continued to seesaw around the psychologically important 2.4500 handle, a level defended by the 61.8 Fib 61.8 Fib of the 2.5672-2.2692 AUD rally. As sterling longs resume their advance, a further break to the upside will most likely see the cross head higher and target the Australian dollar defenses around 2.4632, a level established by the April 7, 2005 daily high, breaking of which will most likely see the cross accelerate toward the next psychologically important 2.5000 handle, a level defended by the 78.6 Fib of the 2.5672-2.2692 AUD rally at 2.5022. However if Australian dollar bulls manage to gain control of the price action, a move below 2.4300 will most likely see the cross head toward 2.4174, a level marked by the 50.0 Fib 61.8 Fib of the 2.5672-2.2692 AUD rally. A further move on the part of the Aussie bulls will most likely see GBP/AUD extend its decline below the psychologically important 2.4000 handle, a level defended by the December 20 daily high. Indicators are favoring sterling longs, with both positive momentum indicator and positive MACD treading above the zero line, with ADX above 25 at 33.92signaling an existence of a trend, not a direction of one, while overbought Stochastic adds to a trading outlook.

Sam Shenker is a Technical Currency Analyst for FXCM.