GBP/JPY â,“ GBPJPY has continued to creep higher. The pair made a new high yesterday at 220.79. There is bearish divergence with oscillators on the daily â,“ which favors a turn lower. A break below the short term trendline from the 8/18 low at 217.44 instills confidence in the bearish argument. That line is just below current price at the 220.00 figure. Yesterdayâ,"s high at 220.79 is resistance â,“ as is the 78.6% fibo of 240.96-148.29 at 220.96.
GBP/CHF â,“ We mentioned last week that â,"The decline from 2.3497 looks like a full5 waves and thus a corrective move higher is warranted before another leg of weakness begins.â, The pair traded up to 2.3405 today but has since fallen to just above 2.3300. Price remains above a supporting trendline from the 8/21 low at 2.3116. That line is at 2.3275 (also the 20 day SMA) and a break lower bolsters the bearish case. Support is at the 8/21 high at 2.3229 and the 8/21 low at 2.3116.
GBP/AUD â,“ GBPAUD has consolidated and formed a triangle following the decline from 2.5138. Price has most recently tested the upper end of the triangle just above 2.4850. The triangle is symmetric â,“ which keeps the bias neutral until a break. A break argues for a return to the extremes of the range that GBPAUD has traded in since Mid may (2.4240-2.5140).
Jamie Saettele is a Technical Currency Analyst for FXCM.