Pound Crosses Stall at Important Resistance: Further Declines Likely?

  1.   GBPJPY
    
  2.   GBPCHF
    
  3.   GBPAUD
    

GBPJPY - The GBPJPY has recently broken through a multi-month support line, with the pair?s inability to cross the 1/30 high at 240.11 leaving risks to the downside through short-term trade. The MACD has likewise crossed over on the daily chart, signaling that momentum may be turning in the JPY?s favor. Continued failure at the 240.11 mark leaves the pair open to tests of immediate lows at 238.06, with a break eyeing the 4/19 trough at 235.18. Negation of the bearish scenario comes on a break above 240.11, with further price targets seen at the 1/23 high of 241.54.

GBPCHF - As we have continued to highlight through the past two weeks, the GBPCHF has failed to post a sustained break above the key 61.8% retracement of 2.3289-2.4764 at 2.4197. Though it has closed above the line for the past two consecutive days, bears are seen unwilling to allow the pair higher on a prolonged basis. Risks subsequently remain for a retest of a rising trendline near 2.4150, with a break to eye the 5/7 low at 2.4070 and eventually 2.4000. A negation of the bearish scenario comes on a break above 2.4318.

GBPAUD - After a bounce off of a significant Fibonacci at the 61.8% of 2.2670-2.5489, the GBPAUD has stalled near congestion at the 2.4300 mark. Risks subsequently remain for a retest of the solid price floor, with a break to signal a continuation of the 2007 downtrend in the pair. Further support is eyed at 2.3429 on a sustained break, but negation of the bearish case comes on a move above recent spike-highs at 2.4261.