1. GBP/JPY
2. GBP/CHF
3. GBP/AUD

GBP/JPY - Cable bulls retreated in force after the Japanese yen longs managed to break the channel's lower boundary and pushed the cross below the psychologically important 200.00 figure. As the price action remains in favor of the Japanese yen longs, the next move will most likely see the cross fall toward 198.53, a defensive position established by the 200-day SMA. A break below will most likely see the pound longs retreat further as Japanese yen bulls push the cross to 196.80, a cable defensive position marked by the August 22 daily spike low. A further collapse of the sterling defenses will most likely see the GBP/JPY test the bids around 195.70, a 23.6 Fib of the 205.37-192.70 JPY rally, a level that currently acts as a gateway to the psychologically important 195.00 handle. Indicators are diverging with momentum indicator below the zero line while MACD is sloping downward toward the zero line, with neutral oscillators giving Japanese yen longs enough room to maneuver.

Key Levels & Technical Indicators

GBP/CHF 1 Swiss Franc continued to push the British pound bulls toward the channel's lower boundary as the cross fell below the 23.6 Fib of the 2.1471-2.3311 GBP rally at 2.2877. As sterling bulls retreat further, the next move by the Swissie longs will most likely see the cross test the cable's defenses around 2.2737, a cable defensive position established by the 50-day SMA. A sustained momentum will most likely see the Swiss Franc longs take on the 2.2600 figure, a level that is heavily defended by the 38.2 Fib of the 2.1471-2.3311 GBP rally thus braking below the channel's lower boundary. A further move to the downside will most likely see the Swissie bulls push their way toward the 2.2585, a level marked by the 200-day SMA. Indicators are beginning to diverge with momentum indicator below the zero line, while MACD is sloping downward toward the zero line. Oscillators remain neutral, thus giving either side enough room to maneuver. 

Key Levels & Technical Indicators

GBP/AUD - Australian dollar bulls remained on a warpath as the cross headed toward the psychologically important 2.3000 handle. A break below the 2.3000 will most likely see the Aussie longs push their way toward 2.2991, a level marked by the August 4 daily low. A further advance by the Australian dollar bulls will most likely see the cable defenses collapse around 2.2692, a multi-year low and a gateway to the psychologically important 2.2500 figure. A sustained momentum will most likely see the Australian dollar bulls stampede their way toward the 2.2461, a level marked by the October 8, 1997 daily high. Indicators are favoring Aussie longs with both MACD and momentum indicator treading below the zero line, ADX is above the key 25 line at 31.13, signaling an existence of a strengthening trend, not a direction of one. Stochastic is treading below the oversold line with RSI about to dip below the oversold line thus adding to the outlook the GBP/AUD is trending.
 
Key Levels & Technical Indicators

Chart of the Moment

Sam Shenker is a Technical Currency Analyst for FXCM.