British Pound Crosses Forming Lows

Daily Forex Technicals | Written by DailyFX | Dec 12 08 02:21 GMT |

The British Pound crosses may be forming bases in order to work higher from in the days and weeks ahead. GBPCHF It is possible that the GBPCHF has formed a significant low. A number of signs point to a rally attempt, including a potential inverse head and shoulders pattern and the fact that the last leg of the decline was from a triangle. Moves from triangles are terminal, meaning that they complete a larger pattern (in this case a 5th wave). GBPCAD The GBPCAD has built a base to rally from and eventually test 1.9260. A break through there would shift focus to 1.96, which is the 61.8% of the drop from 2.0750. 1.7890 needs to hold in order for this bullish outlook to remain favored. GBPAUD The long term trend is considered down as long as price is below 2.4353. The spike high to 2.7110 in early October probably completes wave B of a long term A-B-C decline that began in 2001. The minimum long term target is below 2.0291. Favor the downside as long as price is below the resistance line that has held since October 8. Resistance is reinforced from the December 5 high at 2.3161. GBPNZD There is support around 2.70 for the GBPNZD. This level is former support as well as former resistance (circled). RSI on intraday charts has hovered near oversold for most of December and the indicator has turned up. The evidence points to strength going forward and a test of the short term resistance line near 2.80. DailyFX Disclaimer Investment in the currency exchange is highly speculative and should only be done with risk capital. Prices rise and fall and past performance is no assurance of future performance. This website is an information site only. Accordingly we make no warranties or guarantees in respect of the content. The publications herein do not take into account the investment objectives, financial situation or particular needs of any particular person. Investors should obtain individual financial advice based on their own particular circumstances before making an investment decision on the basis of the recommendations in this website. While we try to ensure that all of the information provided on this website is kept up-to-date and accurate we accept no responsibility for any use made of the information provided. All intellectual property rights are the property of Daily FX. Daily FX and its affiliates, will not be held responsible for the reliability or accuracy of the information available on this site. The content herein is provided in good faith and believed to be accurate, however, there are no explicit or implicit warranties of accuracy or timeliness made by Daily FX or its affiliates. The reader agrees not to hold Daily FX or any of its affiliates liable for decisions that are based on information from this website. Daily FX highly recommends that before making a decision, the reader collects several opinions related to the decision and verifies facts from at least several independent sources.