The GBP crosses have dropped sharply but a period of consolidation is likely. Look for range opportunities, especially in GBPNZD, which is testing channel support.
The GBPCHF could break through 2.0963 in order to complete a larger correction that began at 1.9421. However, the advance to 2.0963 was in 3 waves so it is very much possible that the corrective advance is complete and that the next move is lower in a 5th wave…to below 1.9421.
The GBPCAD remains range bound. The pair has been forming a triangle pattern since the multi-year low at 1.9011. Another leg down in the triangle could test 1.93 or so before a bounce. Bigger picture, triangles are continuation patterns, so a continuation of the longer term downtrend is likely.
The GBPAUD decline is probably a 4th wave within the 5 wave bull cycle from 2.0295. This 4th wave could unfold as a triangle, which makes the pair a good range trading candidate over the next several weeks.
Last week, we mentioned that “the advance is nearing the top side of a potential channel. Any near term decline should find support at 2.6653 or channel support. The long term trend is up so look to buy dips near these mentioned levels, against 2.5855.” There is not much of a change to the longer term analysis. The pair is at channel support right now, which presents a bullish opportunity against 2.6184.