GBP/JPY ââ,¬â€œ Overbought daily oscillators have turned down and the GBPJPY has retraced to just above former resistance from the 11/9 high at 225.28.  The decline has stalled between the 10 and 20 day SMAs ââ,¬â€œ the 20 day is support at 225.06.  A trendline drawn off of the 4/27, and 11/23 lows is at 223.54 today and price above the line keeps the bullish trend intact.  A break below the line begins to suggest that a much deeper retracement is in the works and a drop below the 11/23 low at 223.34 would break the long streak of higher lows.

GBP/CHF ââ,¬â€œ The GBPCHF rallied to the 61.8% of 2.3684 to 2.3323 before reversing at 2.3693.  Intraday oscillators (60 and 240 minute) are declining and not in extreme territory ââ,¬â€œ suggesting potential for a test of the 11/27 low at 2.3323.  Daily studies are now bearish as well.  Price continues to hold below both the 10 and 20 day SMAs and daily CCI and RSI are below midpoints.  Resistance is at the 12/4 high at 2.3693.  A head and shoulders pattern on the daily would be complete on a break below 2.3323  - after which focus would shift to the 50% of 2.2518-2.3865 at 2.3192.

GBP/AUD ââ,¬â€œDaily CCI has turned down from above 100 and the GBPAUD also appears to be tracing out a head and shoulders reversal pattern.  This pattern would be completed on a break below the neckline, which is just above 2.4600.  A break below the line would warrant a bearish bias and shift focus to the 7/26 low at 2.4242.  Short term support is at the 11/30 low at 2.4774.  The 12/4 high at 2.5185 needs to hold as resistance for the head and shoulders pattern to remain valid.

Jamie Saettele is a Technical Currency Analyst for FXCM.