Weekly Trades: GBP/USD, GBP/CHF and GBP/JPY
|For this week's trades, GBP/USD, GBP/JPY and GBP/CHF as not only did GBP/USD and GBP/CHF close at 1.2926 but GBP/USD and GBP/CHF fits into my NZD analysis as currency prices serve as support and resistance levels against each other.
Big line breaks for lower GBP/USD, GBP/CHF and GBP/JPY are located at 1.2759, 1.2681 and 138.62. See GBP/CHF 1.2681 holds GBP/USD at 1.2759 and 1.3862 GBP/JPY trades far above both GBP/USD and GBP/CHF.
GBP/CHF must move down in order for GBP/USD to trade lower. As GBP/CHF trades lower then former GBP/CHF supports translates to GBP/USD supports on the way down. GBP/JPY becomes the follower to GBP/CHF and GBP/USD.
If GBP/CHF fails to move down then GBP/USD is well supported by GBP/CHF and won't trade lower. This translates to GBP/JPY non ability to trade lower and this situation serves for all GBP pairs.
GBP/CHF contains higher ranges than GBP/USD by design and GBP/JPY contains higher ranges than GBP/USD and GBP/CHF. GBP/USD is stuck dead center as a middle range currency pair and requires movement from GBP/JPY or GBP/CHF in order to provide direction.
Actual commentary should state GBP/USD moved higher to GBP/CHF X Point or lower at GBP/CHF support because mathematically, supports and resistance points are perfect. Applies to targets as perfect mathematical points. But then nobody would understand actual commentary.
A break of GBP/USD 1.2759 targets 1.2610 on a break of 1.2685. GBP/CHF below 1.2681 targets 1.,2509 on a break of 1.2595. And GBP/JPY below 138.62 targets 136.47 on a break at 137.54.
Overall GBP strategy this week is short at higher levels.
GBP/USD
Short 1.2982 and 1.3019 to target 1.2833. Must cross 1.2945, 1.2908 , 1.2871 and 1.2859.
Short below 1.2759 to target 1.2685. Must cross 1.2722.
GBP/CHF
Short 1.2939 and 1.2982 to target 1.2766. Must cross 1.2896, 1.2853 and 1.2810. Short below 1.2681 to target 1.2595.
GBP/JPY
Short 141.80 and 142.33 to target 139.85. Must cross 141.27, 140.74, 140.47 and 140.20.
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