GBPJPY
GBPCHF
GBPAUD
Commentary – Since we wrote about the GBPJPY last week, the pair has moved all over the place but is actually at the same place as now as it was then! We have maintained that “we are working with a large complex correction” and that seems to be the case still. Wave Y in a large W-X-Y complex correction is unfolding as a diagonal and price needs to push through 241.35 in order to complete the entire B wave from 219.30. Once this happens, we expect THE top (maybe near the 78.6% at 244.29). Coming under 235.16 would suggest that a top is in at 241.35.
Strategy – Flat (very aggressive traders may look for longs against 235, targeting 244)
Commentary – Last week, we were bullish against 2.3933 and were stopped out. Price is about 200 pips lower right now but the pattern is still bullish. The decline from 2.4205 looks like a large 3 wave corrective decline and the drop has stopped at the 61.8% of the previous rally. The next advance should travel at least as far as the 2.3487-2.4205 rally did (718 pips). The rallies would equal each other at 2.4413.
Strategy – Bullish, against 2.3695, targets 2.4400 and 2.4800 (161.8% ext.)
Commentary – We wrote last week that we were looking for a bottom to form so that we could get bullish for “a return to at least 2.3200”. A rally did take place and ended at 2.2875 but the advance looks like a correction. Based on the individual legs of the cross (AUDUSD and GBPUSD), expect a choppy range (which is already developing).
Strategy – Flat