1. GBP/JPY
2. GBP/CHF

GBP/JPY - Cable bulls remained on bid side of the market as the cross headed higher after breaking above the psychologically important 200.00 barrier. As the cross remain confined to an upward sloping channel, a break above the 203.00 handle will most likely see the sterling longs punch through the yen defenses at 203.44, an April 13 daily high. A sustained momentum will most likely see the cable longs takeout the 204.48,a second line of Japanese yen defenses comprised of April 7 daily high, with a further breakout seeing the cross take on the offers around 205.37, a 2005 high. Indicators are signaling overbought conditions with both Stochastic and RSI treading above the oversold line, while both MACD and momentum indicator's remain above the zero line.  

Key Levels & Technical Indicators

GBP/CHF - Swiss Franc longs retreated as cable longs retaliated and pushed the cross toward 2.2876, a 23.6 Fib of the 2.1471-2.3311 GBP rally. As price action intensifies around the current levels, a loss of momentum for the pound bulls can be disastrous as Swiss Franc longs will most likely take an advantage of the temporary weakness and push the cross toward the 50-day SMA at 2.2662. A break below will most likely see the cross tumble toward the 2.2608, a 38.2 Fib of the 2.1471-2.3311 GBP rally with sustained momentum most likely seeing  GBP/CHF head toward the 200-day SMA at 2.2531, right above the psychologically important 2.2500 handle. A further move to the downside will most likely see the GBPCHF head toward the 50.0 Fib of the 2.1471-2.3311 GBP rally at 2.2391. Indicators remain on the in favor of the cable longs with both MACD and momentum indicator above the zero line, while neutral oscillators give either side enough room to maneuver.

Key Levels & Technical Indicators

Sam Shenker is a Technical Currency Analyst for FXCM.