GBP/JPY ââ,¬â€œ GBP/JPY has made an 8 year high as the pair pushed through the 8/31 high at 223.81 and pierced the 224.00 figure. Momentum has slowed considerably as evidenced by bearish divergence with oscillators on the daily and weekly charts.  However, shorting 8 year highs is akin to standing in front of a speeding dump truck.  A break below the potential supporting trendline drawn through 217.35 and 221.34 is required to instill confidence in the downside.  That trendline is near 222.00 and increases about 11 pips per day.  The next bullish target is the psychological 225.00 figure.

GBP/CHF ââ,¬â€œ After topping out on 10/18 at 2.3782, GBPCHF has ranged between 2.3571 and 2.3764.  Resistance just below 2.3800 appears well guarded and divergence with daily oscillators (like GBPJPY) appears suggests that upside potential is limited.  The proximity of the 2.3782 high limits risk and but a drop below the 3 and a half month trendline would lend confidence to a bearish stance against 2.3782.  The next bullish target is the 4/6/2004 high at 2.3828.

GBP/AUD ââ,¬â€œ GBP/AUD has bounced from just below the 2.4600 figure.  Support is reinforced by the 9/6 low at 2.4511.  A continuation of strength may stall at resistance from the 10/18 and 10/20 highs at 2.4861/72.  A break above there would more confidently suggest that a low is in place at 2.4591 and expose the 10/12 high at 2.5000.  240 minute RSI has crossed above 50, which favors the upside.

Jamie Saettele is a Technical Currency Analyst for FXCM.