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