Cable Crosses Rally Following Corrective Declines


GBPJPY – The GBPJPY remains in a corrective decline from 241.54. The decline is in its latter stages but could still test the 61.8% of 217.34-241.54 at 226.64. The pair may have already reversed at today’s low of 229.45 (which is the 50% of (217.34-241.56). 228.75 is where the C wave (beginning at 238.21) would equal the A wave (241.54-232.14). This level also coincides with the 4th wave of one lesser degree – so support should be strong just below current price.

GBPCHF – GBPCHF is at major support – the confluence of the 61.8% fibo of 2.3332-2.4765 / former congestion / 11/3 high. As is the case with GBPJPY, the decline from the top is in 3 waves, thus we favor a rally attempt. The 2/27 low at 2.3831 is critical support and needs to hold for the immediate bullish outlook to remain intact. A decline below targets the 78.6% retracement at 2.3639. A rally above 2.4311 instills confidence in bulls.

GBPAUD – The GBPAUD story remains the same. That is, the pair is bouncing from the long term supporting trendline. However, a break seems inevitable. The pair closed below the line last week but has rallied this week. The double top just below 2.5500 needs to hold in order to maintain a cautious longer term bearish bias. In the short term, Fibonacci resistance comes in from the 50% of 2.5493-2.4662 at 2.5077 and the 61.8% at 2.5175.