1. GBPJPY
2. GBPCHF
3. GBPAUD
GBPJPY GBP/JPY continues to trade at the upper end of an ascending triangle on the daily. Massive negative divergence at last weeks 211.44 high did lead to a small correction of strength and the pair currently trades near 210.50. On the hourly chart, recent candles have broken through a supporting trendline from the 5/10 low at 205.71 possibly foreshadowing weakness that is to come. Daily oscillators lean towards bearish as they slope down from higher levels.
GBPCHF GBP/CHF continues to range between 2.2915 and 2.2550. After declining from the 5/19 high at 2.2915, the pair declined to just below the 38.2% fibo of 2.1473-2.3302 at 2.2604 and made an inside day at the lower Bollinger band on 6/5 giving scope to a reversal. A bullish bias is reinforced by the hourly chart, which shows a double bottom at 2.2576/82 along with rising oscillators. If weakness resumes past todays 2.2582 low, then a test of the 78.6% fibo of 2.2449-2.2915 at 2.2549 is a possibility.
GBPAUD GBP/AUD has fallen significantly following the double top at 2.5124/68 from highs on 5/22 and 6/6. Negative divergence on the daily with the double top foreshadowed the decline. In fact, we mentioned last week that Trading opportunities exist?to either buy a break or sell a potential double top. A continuation of weakness targets the 38.2% fibo of 2.3667-2.5167 at 2.4597. Little resistance is evident until the 6/5 low at 2.4901.
Glossary of Terms
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CCI(20) 20 day Commodity Channel Index
> 0 bullish
0 > bearish
> 100 extremely bullish
-100 > - extremely bearish
RSI(14) 14 day Relative Strength Index
> 50 bullish
50 > bearish
> 70 overbought
30 > - oversold
MACD ? - MACD slope (MACD MACD[1])
> 0 bullish
0 > - bearish
Mom(8) 8 day Momentum (shorter-term direction)
> 0 bullish
0 > - bearish
ATR(14) 14 day Average True Range (volatility)
Medium 75th percentile* > ATR(14) > 25th percentile*
High - > 75th percentile*
Low 25th percentile* >
ADX(14) 14 day Average Directional Index (directional strength)
> 30 strong
30 > - weak
*measured against past 3 months
