British Pound Crosses are Bullish
The GBPCHF remains in a 4th wave correction that will complete as either a triangle or flat. The rally from 1.9421 to 2.0963 is in 3 waves and would be wave A of the triangle (or flat). Wave B is underway now and will likely end below 2.0012. In summary, expect the GBPCHF to range for the next few months (although a flat would see the correction end closer to 2.15).
Look at last week’s GBP crosses article to see the Daily chart (which is very bullish). Near term, a 5 wave advance from the 5/19 low at 1.9287 is nearing completion. A 4th wave triangle looks complete (or very nearly so at today’s low) and wave 5 is probably underway. Expect a push through 2.0248 within the next week 2 weeks.
A major low may be in place for the GBPAUD and the short term chart above illustrates why. It is possible to count 5 waves up from 2.0294 (which is a multi-year low) and 3 waves down from 2.0933. Wave 5 of the advance was a diagonal (overlapping) and the 3 wave correction is just shy of the 61.8%, which is at 2.0538. The advance is expected to begin soon.
We maintain that this move higher from the double bottom near 2.40 will continue. The GBPNZD has overcome resistance from the 200 day SMA, which inspires confidence in a longer term bullish bias. Near term, price should remain above 2.5777.