British Pound Crosses

[B]British Pound / Swiss Franc[/B]

The GBPCHF reversed just shy of the 100% extension of the rally from 1.5113-1.7496; which is at 1.8223. Long term, I maintain that a 5th wave decline will complete the entire decline from the 2007 top. A wave 4 high may be in place at 1.8123 as the pair puts trendline support to the test.

British Pound / Canadian Dollar[/B]

The rally to 1.9309 appears is likely a correction (or part of a correction). Expect the pair to drift lower towards 1.7500 or lower over the next several weeks. Very short term, a rally looks likely as intraday momentum indicators are divergent and oversold.

British Pound / Australian Dollar[/B]

The GBPAUD has broken beneath an upward sloping channel, tilts odds in favor of bears. Look to sell a rally into 2.0500/2.0600, which is the 50%-61.8% retracement of the decline from 2.0990.

British Pound / New Zealand Dollar[/B]

Since early 2008, the GBPNZD has traded in a contracting range and price is nearing the lower end of that range now. The 200 day SMA is above price and sloping down (line is in red), which is bearish. There is a 2.4900-2.6200 range that has held since May, so a break could be significant.

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 [I]Sentiment in the Forex Market.[/I]

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