British Pound Crosses: Establishing Bull Trends

Daily Forex Technicals | Written by DailyFX | Jan 30 09 01:51 GMT |

GBPCHF to break 1.6959 soon GBPAUD to break 2.23 soon GBPNZD headed towards 3 GBPCHF Last week, I wrote that 'price is expected to exceed 1.6959, ideally remaining above 1.5639 in the process.' 1.5639 held and the GBPCHF is on its way to a break of 1.6959. A short term correction could see a drop to 1.6259 support. The larger trend is up as long as price is above 1.5639 although the pair shouldn’t come near that level. GBPCAD The GBPCAD dropped to a 24 year low this week (1.6711) and has rebounded 800 pips. Continued divergence with RSI as well as the indicator favors a recovery. A rally through the trendline drawn off of the October 2008 and January highs would suggest that an important bottom is in place. Until then, the GBPCAD is vulnerable to weakness. Still, I favor strength given the bullish counts in the other GBP crosses. GBPAUD I wrote last week that 'the GBPAUD is extremely bullish against 2.0225. A break above 2.2322 is expected. Chart resistance is not until 2.3062.' The pair has vaulted higher and should continue higher towards the mentioned objective. Any weakness should prove temporary and price should stay above 2.1258. GBPNZD A multi-year triangle is unfolding. Wave e may come close to testing 3.00 in the months ahead. Price ideally remains above 2.6622 going forward. 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.