Heads up on the GBP/USD. the break below 2.0285 in the initial signal that we are headed lower. It looks like we have a diagonal (see 4 hour chart) where we may have topped 2.0358 with a truncated wave 5. The diagonal started at 2.0041.

Zeev,

I have maintained that a larger correction is playing out, but it is a correction and the highs are in place in my opinion (of course...this is trading and we all have different opinions...what fun would it be if we all thought the same thing!). I think that the clearest pattern is in the NZD/JPY. A rally in wave C is underway I believe towards 85.00 but the next big leg down will occur in an even larger wave C. The JPY crosses commentary is at http://www.dailyfx.com/story/currenc...532302250.html for anyone interested

GBP/USD 15 min chart, one more low would signify a 5 wave decline. 2.0285 has support has not been broken yet but prices are hanging out near he lows. (typical of wave 4s). Be interesting to see at 12 if the pair closes below the lower trend line of the diagonal.

I agree with your Cable analysis. This fits with the idea that 2.0366 marked the end of a diagonal from 2.0043. As I type, Cable just dropped below 2.090 to make a fifth wave.

Guys something very weird is going on. The eur/jpy is making new highs while the GBP/JPY is making new lows. Often, thats a common trait of a top.

Additionally, EURGBP has broken higher. This is a significant breakout as the pair has been trading in a correction in a large second wave for quite some time. Wave 3 higher is underway towards the mid .70's. The chart presented here is a daily.

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Possible top in the Eur/JPY. We have 5 waves up fromt he low of 155.14 (see 4 hour chart). The fifth wave of the 5 wave rally also just completed 5 waves.(see 5 min chart). Also the strenth in the Euro/JPY was not replicated by the GBP/JPY (indications of a top). Expect at leat a short trem decline to 157.79 (wave 4 of the larger 5 wave rally.

So far the diagonal is looking good on the larger charts (4 hour), but I still need to see a break below 2.0285 (thats wave b of wave 5 of the diagonal) in order to be sure. Also, Id like to see a close below the lower trendline on a 4 hour chart before declaring it a diagonal.

I think the story of the day is Euro strength, Pound weakness. The reason the Euro GBP moves so slow is because these pairs move in sync. The euro/Jpy made new highs, but the Gbp/JPy, not even close. Classic battle of bulls vs.bears. Who will win?

Going with the theme that the Yen crosses are going to continue higher before the next big leg lower, the AUDJPY is likely close to completing wave B of B in a triangle. Watch out for a break higher towards Fibo resistance either late this week or next week.

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Possible ascending diagonal the 5 min Euro/JPY
chart. Break below 158.74 is the signal.

Hey guys,
The 5 min just closed below the lower trend line of the diagonal and we broke below 158.74. Lets see what happens. I'm looking of a decline to at least 157.79.

At this point I see 5 down to and 3 up to 2.0327, and internals look right.

Hey guys, a break below 158.60 on the Eur Jpy in the intial signal we are going much lower with a stop above the high of the day.

Hey guys,

Does anybody have an interest in SEK?
Jamie do you follow this currency?

Thanks

Spin