GBP/JPY â�,�“ True to form, GBP/JPY did an about face and in the blink of an eye has erased a good portion of its losses from 4/20 through 4/26.  The pair has challenged 210.00 this morning in London trading and although there is slight negative divergence with CCI on the dealer chart, the daily continues to look quite bullish with recent positive MACD and stochastic crosses.  The GBP/JPY pattern has been to rise steadily for 2 to 3 weeks and then completely erase those gains in about 1 week.  Weâ�,��"�ll mention again that the pair seems to make its biggest one day gain or close to it on the last day of its rally.  We will watch for this dynamic, especially if the pair approaches the 4/19 and 2/2 highs of 210.78 and 211.17.

GBP/CHF â�,�“ We noted last week that â�,��"â�,�¦the pair is trapped within a tight consolidation that looks ready to breakâ�,�.  The pair did break, first down and then up, faking out and likely causing a headache among traders (old triangle lines in thin black on chart).  At the moment, the pair trades at its 61.8% fibo of 1.3051-2.2453 at 2.2822.  Daily oscillators appear bullish (RSI > 50, positive cross) and a break above could challenge 3/24 high at 2.2900.  Hourly oscillators show negative divergence so the short term could see a rejection at the mentioned fibo level and weakness towards the 23.6% of 2.2551-2.2837 at 2.2770 and 38.2% at 2.2728.

GBP/AUD â�,�“ The Aussie butchered the Pound yesterday to the tune of 400 pips and the carnage ended just below the 4/12 low of 2.3824.  After the decline from 2.4844 that occurred at the beginning of April the pair has consolidated, but has formed one of the most rare consolidation patterns known.  What we have is a broadening formation, or a triangle turned backwards.  This is typically a continuation pattern and since the recent major move was down, we would look for weakness as opposed to strength.  But this type of pattern is unusual and sees far more volatility than a normal converging triangle would, thus caution is a necessity.  Resistance comes from yesterdayâ�,��"�s high at 2.4199 and support from yesterdayâ�,��"�s low at 2.3818.

Jamie Saettele is a Technical Currency Analyst for FXCM.