The GBPCHF is relatively unchanged on the day but the today’s price action may be a mere bump in the road as the overall trend remains to the upside. Indeed, we were long since 1.5015 and will now look to lock in some profits by moving up our stop to 1.508. Taking a look at the recent developments, the trade deficit in the U.K. widened in November. Going forward, GBP bulls will closely monitor the rising trend line on the hourly chart due to the fact that it has provided as a line of support since January 3rd. A beak below this area will warrant concern.
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Meanwhile, I am on the sidelines with regards to the AUDUSD. If the Australian employment report fails to meet expectations I will likely into a short position. A better than expected release may provide a short term bounce in the pair; however, the advance will likely be short-lived as the pair managed to make a close below the rising four hour trend line dating back to June. All in all, look to enter into a short trade on a daily close below 0.99 or subsequent to a disappointing labor force report from Australia.
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