GBPJPY
GBPCHF
GBPAUD
Commentary – The GBPJPY is at a very interesting juncture. We have been looking to get bearish for some time, but not until a rally to 232.38/233.68 completes wave ii of C. That said, the GBPJPY rally from 221.27 was in 3 waves so it is very possible that wave ii is complete at 230.33. Still, subjectively speaking (COT data is the big one here), we would like to see a larger correction in wave ii test the 232.38/233.68 area before we commit to the bearish cause. A break of 221.27 would turn us bearish for the drop to 210.00.
Strategy – Get bearish near 232.38/233.68, against 241.35, target 210.00
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Strategy – Flat
Commentary – There is no change to the call for the GBPAUD decline to accelerate. “Larger wave 2 may be complete at 2.3887. A cautious bearish bias is warranted against 2.3887. As such, we are bearish and expect the decline to accelerate in wave 3 of a 5 wave bear cycle that began in August at 2.5640. Keep in mind that this pair broke a supporting trendline that dates to 1985 back in August and that the next major support level is not until below 2.0000.” Near term, the choppy decline from 2.3887 could be a series of 1st and 2nd waves.
Strategy – Bearish, against 2.3887, target TBD
