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Long or short, the fortune of 3 GBP crosses

Article 50 for Brexit is coming 29 March 2017. Quick look at 3 GBP pairs, GBPJPY, GBPAUD and GBPSGD based on relative strength offers contrast for traders who plan to trade GBP outcome.

 

Weekly charts of GBPJPY, GBPAUD and GBPSGD

These are charts of GBPJPY, GBPAUD and GBPSGD showing their relative strength.

GBPJPY is the most bullish and even looks like the previous Q-on-Q downtrend was terminated. It offers GBP bulls a potential pair to go long.

GBPJPY weekly time frame

GBPJPY weekly time frame

 

GBPAUD in my opinion is the weakest due to AUD strength. The Q-on-Q trend is still prominently down. Although currently could be seen as at support (see purple line), any trader going long is going counter trend without the benefit of any visible bullish setup. On the other hand, it is the best pair for a bearish outcome.

GBPAUD weekly time frame

GBPAUD weekly time frame

 

GBPSGD is the ‘medium strength’ pair. There just might be symmetry for a potential inverted head and shoulders pattern.

GBPSGD weekly time frame

GBPSGD weekly time frame

Boxes painted with Autobox V2 indicator for MT4.

 

Coming back to GBPJPY, this is GBJPY on daily time frame. Very prominently there is a 3-month consolidation pattern with a support at orange.

GBPJPY daily time frame

GBPJPY daily time frame

Director, TerraSeeds Market Technician Pte Ltd. Trader, investor. @sohtionghum was picked ‘Top 70 Forex Twitter in 2015’. Operates multiple strategies.

“Dear reader, I do not have a financial license to give advice. I do not know you the reader. Your financial objective and risk tolerance may be different from mine. I am not responsible for any consequence of your action.

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