I have been leaving the GBP pairs well alone given Brexit uncertainty and the recent ‘Flash Crash’ reinforced this caution. However, with the shifting sands following the US Election, as well as ongoing Brexit, the GBP pairs may be worth some consideration again. The monthly charts show many of the pairs trying to carve out some bounce activity and this would not surprise, even if there is to be longer term continuation moves within the recent trends.
GBP/USD monthly: this pair has put in 6 bearish monthly candles but the current October candle is green, albeit as an indecision-style ‘Inside’ candle. Watch to see whether this candle closes green for the month though as some recovery, even if only short-term, could evolve. The US$ is running up into the 100 resistance area and its success in negotiating this major level could determine the success of any recovery for this pair though.
GBP/JPY monthly: this is another GBP pair with more bearish monthly candles of late than bullish but the October candle looks like it might be trying to base off the 129 S/R level. Watch to see where the monthly candle ends up closing with respect to this key level and how it closes; it is currently bullish and engulfing:
GBP/AUD monthly: this pair looks to be trying to carve out a bounce up from the 78.6% fib. Keep an eye on the 1.70 and 1.75 levels for any stake to those claims as this would be bullish. The current candle is an indecision-style ‘Inside’ candle for now though:
GBP/NZD monthly: after 5 bearish monthly candles this pair looks to be trying to print a bullish one. Watch for any monthly close back above the key S/R region of 1.77 to support some potential bullish follow-through. This pair is currently printing a bullish-reversal Railway Track monthly candle pattern but watch to see how it finishes for the month:
GBP/CAD monthly: the current candle is bullish and engulfing but watch to see if the October close is above the 1.70 region. If so, this might help to underpin some bullish recovery activity.
EUR/BGP monthly: watch for any pullback to test the 61.8% fib which happens to be down near the previously broken trend line: