British Pound Crosses Continue to Look Bearish

-GBPCHF completing triangle
-GBPCAD nears Fibonacci support
-GBPAUD at 2009 low
-GBPNZD reverses at Fibonacci resistance

[B]
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 unfolding now towards triangle support / which is near 1.6500. There is the chance that the recent down up sequence actually completes the triangle so there is a short opportunity against 1.7496. The objective is below 1.5113…

[B]
British Pound / Canadian Dollar[/B]

[B]
[/B]

1.67 to 1.86 has been the range thus far in 2009 for the GBPCAD. Most recently, the pair rolled over from a double top at 1.84. Price has pierced the 3/11 low and it is possible 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 is level is potential support.

[B]
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. Wait for a countertrend advance to play out before attempting a short.

[B]
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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