GBP/JPY â�,�“ Last week we stated that â�,��"Since 2001, there have been 5 instances where RSI is overbought (on the weekly), with the current instance as the 5th.  The chart below tells the story.â�,�  The chart displayed was of 5 instances when weekly RSI had reached overbought.  In each instance, the pair topped out and plummeted.  The pair has fallen over 600 pips from last Thursday and has broken below a supporting trendline from 209.53 today.  The pair is nearing support from the 8/18 low at 217.44.  and hourly oscillators are oversold and divergent.  As such, a bounce is possible but the break of the mentioned trendline forces a bearish bias.  The next bearish target is the 50% fibo of 209.53-223.81 at 216.67.

GBP/CHF â�,�“ GBPCHF has fallen as well, albeit not to the extent of GPBJPY.  Daily oscillators are declining (bearish) and there is plenty of room left for the pair to move lower as evidenced by the fact that RSI has not yet crossed below 50.  A continued decline targets the 8/21 low at 2.3116.  The hourly shows that a bounce from todayâ�,��"�s low at 2.3224 was rejected at the 38.2% fibo of 2.3496-2.3224 at 2.3327.  Yesterdayâ�,��"�s close below the 20 day SMA favors bears.

GBP/AUD â�,�“ GBPAUD declined to trendline support yesterday (trendline from 3/2 low at 2.3351) and has since bounced to former support turned resistance at 2.4672 (8/23 low).  The bounce is choppy and corrective in nature but the pair has yet to reach fibo resistance â�,�“ which begins at 2.4710 (38.2% of 2.5032-2.4511).  The 61.8% fibo at 2.4830 is additional resistance.  A break below the aforementioned trendline is required to suggest that a more protracted decline is underway.  

Jamie Saettele is a Technical Currency Analyst for FXCM.