British Pound Crosses: Clear Trade Setups

-GBPCHF bearish triangle
-GBPCAD flat correction complete
-GBPNZD to test low

British Pound / Swiss Franc[/B]

As focused on in recent weeks, a triangle seems to be underway as a 4th wave. Triangles consist of 5 waves (a-b-c-d-e) and waves a through c are complete at this point. Wave d is either complete or nearing completion. A short opportunity against 1.7500 should present itself within the next few weeks.

British Pound / Canadian Dollar[/B]

In recent weeks, commentary has been that “the GBPCAD is completing an expanded flat from the January high. 1.7344 is the 61.8% of the move from 1.6711. This level is potential support.” The pair made its low Monday just above the 61.8%. There is a good chance that a flat is complete. Favor the upside against Monday’s low. The objective is above 1.8500.

British Pound / Australian Dollar[/B]

The GBPAUD continues lower and the larger trend is down as long as price is below 2.2880. Near term strength is possible in a correction and resistance begins at 2.0912.

British Pound / New Zealand Dollar[/B]

GBPNZD waves are quite clear at the current juncture. A multi-year triangle is complete at 2.8968. Confirming completion of the triangle is the decline from 2.8968, which exhibits the 5 wave impulse pattern. The pair reversed from the lower end of the Fibonacci range, so expect the decline to continue.

Jamie Saettele publishes Daily Technicals every weekday morning (930 am EST), COT analysis (published Monday mornings), technical analysis of currency crosses throughout the week (EUR on Tuesday, JPY on Wednesday, GBP on Thursday, AUD on Friday), and the DFX Trend Index every day after the NY close. He is also the author of Sentiment in the Forex Market.

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