British Pound Crosses

  • GBPCHF and GBPCAD approach measured resistance
  • GBPAUD trades in ST choppy channel
  • GBPNZD stuck in range

British Pound / Swiss Franc

The GBPCHF is testing the 100% extension of the rally from 1.5113-1.7496; which is at 1.8223. This level intersects with channel resistance next Monday. Long term, I maintain that a 5th wave decline will complete the entire decline from the 2007 top. With RSI near overbought and price approaching the confluence of mentioned resistance, the GBPCHF is at risk of forming a top.

British Pound / Canadian Dollar

The GBPCAD is nearing “a potential target at 1.9085 (100% extension of 1.6711-1.8418, this level intersects with November 2008 highs).” There are 5 waves up from 1.7378, daily RSI has declined from above overbought and today is an outside day. These are reversal warning signs. There is potential support at 1.8337.

British Pound / Australian Dollar

May’s candle sports a long wick and small body. This is the type of candle that is usually seen at bottoms. Additional evidence of a long term bottom is divergence with MACD is last month’s low. The pair is at the bottom of a decade + range as well. The push above May’s high also points to formation of an important low.

British Pound / New Zealand Dollar

Near term, the GBPNZD remains stuck in a range. There are 2 likely outcomes from here. One is that an expanded flat is underway that will end above 2.6498. The other count treats the consolidation since the low in late March as a triangle.

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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