GBP/JPY ââ,¬â€œ GBP/JPY has ranged the past week between 211.44 and 208.56 but is rallying from the 208.56 low on 5/26.  The hourly chart shows an inverse head and shoulders continuation pattern and rising oscillators.  The daily chart also shows rising oscillators although slight divergence with CCI, RSI, and MACD urges caution as the pair trades near a resistance zone from 210.79 to 211.44 (4/19 high and 5/31 high).  With the proximity of resistance and the divergence among oscillators and price, there is little risk to the upside.  However, a break above resistance could see prices sky rocket due to the amount of times resistance has been tested.

GBP/CHF ââ,¬â€œ GBP/CHF is the poster child for ranges.   Every once in a while, it will spike 100 or so pips above its 2.2915 resistance or fall below its 2.2570 support, but 2.2915-2.2570 is the predominant range.  The pair most recently bounced off of 2.2915 on 5/19 and 5/17.  The short term outlook is slightly bullish due to an upward sloping channel that began in the beginning of April, thus scope remains for yet another test of 2.2916 (115 pips away).  Initial support is at yesterdayââ,¬â"¢s low of 2.2719.

GBP/AUD ââ,¬â€œ GBP/AUD found support at its 20 day moving average this week and has since rallied 500 pips.  Resistance above is at the 5/22 high of 2.5124.  Trading opportunities exist at that point to either buy a break or sell a potential double top.  The path of least resistance appears up until then as oscillators are rising on the daily.  However, a short term correction of recent strength is suggested by negative RSI divergence on the hourly.  Support rests at fibos of the recent move from 2.4459-2.4964 at 2.4471 (38.2%), 2.4653 (61.8%) and 2.4568 (78.6%).

Jamie Saettele is a Technical Currency Analyst for FXCM.