British Pound Threaten Breakouts

British Pound / Swiss Franc

The rally from the December low reached 1.75 and the advance is in 3 waves and fits as wave 4 within the 5 wave decline from the 2007 high.  A drop below 1.5113 (December low) could occur in order to complete 5 waves down.  It is also possible that the GBPCHF has entered into a longer term range.  Even so, the pair likely ranges at lower levels (could be a flat or triangle).  Bears can move risk to 1.7050 and target the January 21 low at 1.5640.

British Pound / Canadian Dollar

The GBPCAD may be preparing for an upside break through 1.86.  Price is trading above a short term line drawn off of the January 16, February 9, and February 23 highs.  Price is also trading above the 55 day SMA (red line) and RSI appears on the verge of busting through a consolidation.  Above 1.7744 and the bullish bias is intact.

British Pound / Australian Dollar

The series of higher highs and higher lows since the January low is bullish.  Price is also above both the 55 day SMA (blue) and 233 day SMA (red).  Holding above 2.1680 keeps bulls in control.

British Pound / New Zealand Dollar

A multi-year triangle has been underway in the GBPNZD.  I had previously thought that wave e was complete but this seems unlikely after reconsideration given how little time wave e has consumed.  Waves a through d took 9, 19, 9, and 4 months.  Wave e is in its second month.  Expect consolidation / upward pressure over the next few months before wave e is complete.  Price ideally remains above 2.7066 on its way to 3.00.



Jamie Saettele publishes Daily Technicals every weekday morning (930 am EST), COT analysis (published Monday mornings), technical analysis of currency crosses throughout the week (EUR on Tuesday, JPY on Wednesday, GBP on Thursday, AUD on Friday), and the DFX Trend Index every day after the NY close.  He is also the author of Sentiment in the Forex Market.

Please send comments about this report to jsaettele@dailyfx.com