Quick update on GBP pairs, as the Pound may be on the move for next leg higher. We continue to like GBP/USD and GBP/AUD, while GBP/CHF and GBP/JPY are still pending a breakout. We took profit on a ST long EUR/GBP trade where we opened at the bottom of ascending channel, but we don’t want to be caught on the short side in a squeeze in Pound.
GBP/AUD – Temporariy dropped back under neckline but bounced off from up trend off lows.
GBP/USD – Defended down channel breakout, and likely retest recent highs and charge towards 1.26 area
GBP/JPY – Remain bounded under horiontal resistance connected by Aug and Sept swing lows.
GBP/CHF – Remains inside horizontal rectangle range, a breakout above would be a strong buy
EUR/GBP – Remains inside descending channel. No action until a break through, or retest of top of channel.