Cable Crosses Correct Recent Declines but Trend Is Down

[DailyFx]

1. GBPJPY
2. GBPCHF
3. GBPAUD


GBPJPY – The 4th wave correction that began on 3/5 at 221.10 is still in progress. This is the 3rd wave of the correction (C wave) and could extend to where wave A would equal wave C at 231.34. This is just below the wave 1 low at 232.14. A rally above 229.76 satisfies minimum expectations for the rally. A decline should then come under 221.10 to complete the bearish pattern from 241.54.

Key Levels & Technical Indicators


GBPCHF – The GBPCHF rally is undoubtedly corrective but this rally could extend to the confluence of the 3/7 high / 61.8% of 2.3920-2.3353 at 2.3703. The pattern since the 3/5 low at 2.3291 has taken the form of a head and shoulders continuation pattern. While some more consolidation likely takes place below 2.3978 (2/19 low), the major trend may be switching from bullish to bearish as the GBPCHF seems poised to break below the 200 day SMA.

Key Levels & Technical Indicators



GBPAUD – We said last week that “the pair is bouncing from the long term supporting trendline. However, a break seems inevitable as the pair continues to hug the trendline.” The GBPAUD finally broke lower this week and the pair should be headed to much lower levels now. The next major support area is the July 2006 low at 2.4237.
Key Levels & Technical Indicators




Table
CCI(20) – 20 day Commodity Channel Index
> 0 – bullish
0 > – bearish
> 100 – extremely bullish
-100 > - extremely bearish

RSI(14) – 14 day Relative Strength Index
> 50 – bullish
50 > – bearish
> 70 – overbought
30 > - oversold

MACD ? - MACD slope (MACD – MACD[1])
> 0 – bullish
0 > - bearish

Mom(21) – 21 day Momentum
> 0 – bullish
0 > - bearish

ATR(14) – 14 day Average True Range (volatility)
Medium – 75th percentile* > ATR(14) > 25th percentile*
High - > 75th percentile*
Low – 25th percentile* >
*measured against past 3 months