British Pound Crosses Correcting Lower

GBPCHF

The GBPCHF remains in a 4th wave correction that will complete as either a triangle or flat. The rally from 1.9421 to 2.0963 is in 3 waves and would be wave A of the triangle (or flat). Wave B is underway now and will likely end below 2.0012. In summary, expect the GBPCHF to range for the next few months (although a flat would see the correction end closer to 2.15).

GBPCAD

We wrote last week that “near term, a 5 wave advance from the 5/19 low at 1.9287 is nearing completion. A 4th wave triangle looks complete (or very nearly so at today’s low) and wave 5 is probably underway. Expect a push through 2.0248 within the next week 2 weeks.” The GBPCAD exceeded 2.0248 and hit a high of 2.0410 yesterday. One more high is possible to complete wave 5 of 5 but the bulk of the advance is complete. The 5 waves up confirms our long term bullish bias. Expect a corrective decline to command the bulk of the next 2 months.

GBPAUD

We wrote last week that “a major low may be in place for the GBPAUD and the short term chart above illustrates why. It is possible to count 5 waves up from 2.0294 (which is a multi-year low) and 3 waves down from 2.0933. Wave 5 of the advance was a diagonal (overlapping) and the 3 wave correction is just shy of the 61.8%, which is at 2.0538. The advance is expected to begin soon.” The advance did begin and price hit 2.0963 yesterday but price has pulled back a good deal. The count above is intact as long as price is above 2.0587. A drop below there indicates that a flat is underway and that wave 2 will not end until below 2.0547.

GBPNZD

We maintain that this move higher from the double bottom near 2.40 will continue although near term, there is potential for a sizeable decline; to at least 2.5775. Longer term though, the GBPNZD has overcome the 200 day SMA, which bodes well bulls.

DailyFX

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