GBPJPY
GBPCHF
GBPAUD
Commentary – We wrote last week that “it appears that wave i of C is complete at 221.27 and that a corrective wave ii is underway now. Expect resistance near the 61.8% of 241.35-221.27 at 233.68 as well as the 11/14 high at 232.38.” This pattern is playing out as expected so there is no change to the outlook for a top near 232.38/233.68. That is the sell zone.
Strategy – Get bearish near 232.38/233.68, against 241.35, target 210.00
Commentary – We wrote last week that “wave iii did end at 2.2602. Expect wave iv to end near 2.3398 (50% of wave iii and 11/14 high). A new low should follow in the coming week(s).” Wave iv ended at 2.3359 on Tuesday and the pair has plummeted. Expect a low (below 2.2602) to be registered in the coming days before a large advance begins that will likely last weeks if not months.
Strategy – Flat
Commentary – Last week we wrote that “the GBPAUD came a few pips shy of the 50% at 2.3910. As such, a larger wave 2 correction may be complete at 2.3887. A cautious bearish bias is warranted against 2.3887. A break below 2.3300 instills confidence in the bearish bias.” 2.3887 has held and price did come under 2.3300. As such, we are bearish and expect the decline to accelerate in wave 3 of a 5 wave bear cycle that began in August at 2.5640. Keep in mind that this pair broke a supporting trendline that dates to 1985 back in August and that the next major support level is not until below 2.0000.
Strategy – Bearish, against 2.3887, target TBD