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.
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.
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.
Short 141.80 and 142.33 to target 139.85. Must cross 141.27, 140.74, 140.47 and 140.20.
Trading currencies and other financial instruments carries a degree of loss and possible loss of entire investments. Please managed your own risks, stop loss, and margins requirements.