GBP/JPY - Cable bulls remained on a warpath as they cross remains confined to a large upward sloping channel that dominated the price action since the middle of July. As the price actual remains in favor of the pound longs a push toward the 208.12, a level marked by March 8, 2004 daily high will most likely see the sterling longs most likely lose momentum and head toward the psychologically important 205.00 handle. A further move to the downside will most likely see the Japanese yen longs push their way toward the 203.68, a level marked by the 20-day SMA. Indicators are signaling trending conditions with ADX above 25, a 31.92, signaling an existence of a trend, not a direction of one, while momentum indicator and positive MACD above the zero line, with both overbought oscillators supporting the trending market outlook.

GBP/CHF - Swiss Franc bulls remained on the sidelines as the price action remains confined to a narrow trading range following the failure by the sterling bulls to break above the 2.2900 handle, a level defended by the 23.6 Fib of the 2.1471-2.3311 GBP rally. Another attempt by the cable longs to take on the triangle's upper boundary will most likely see the pound longs lose momentum and with subsequent reversal seeing the cross head toward the sterling defenses around 2.2718, a level established by the 20-day SMA. A further move to the downside will most likely see the cross test the bids around 2.2666, a 200-day SMA.  Indicators are diverging with momentum indicator above the zero line and negative MACD sloping upward below the zero line. Oscillators remain neutral, thus giving either side enough room to maneuver. 

GBP/AUD - Australian dollar bulls were in full retreat after the pound longs launched a massive counterattack that pushed the cross above the channel's upper boundary, thus breaking the Aussie dominance over the overall price action. As cable longs continue to advance against the Aussie positions, a further move to the upside will most likely see the cross test the Australian dollar defenses around 2.4175, a level marked by the key 50.0 Fib of the 2.5672-2.2692 AUD rally. A further move to the upside will most likely see the sterling longs pound their way toward 2.4524, a level established by the 61.8 Fib of the 2.5672-2.2692 AUD rally Indicators are signaling trending conditions with ADX above 25, a 30.04, signaling an existence of a trend, not a direction of one, while momentum indicator and positive MACD are above the zero line, with overbought Stochastic supporting the trending market outlook.

Sam Shenker is a Technical Currency Analyst for FXCM.