The pound and the dollar are trading together. The two currencies trade evenly and this is seen in their charts. When a currency pair moves sideways it means the two currency pairs are equal at their current level. For the moment the pound and the dollar are both high risk currencies. Even though the dollar has a low interest rate compared to the pound, the dollar has fallen enough to make up for the difference. The market believes the fed will not need to cut rates much in the future. The market is also not concerned with the possible rate cut by the BOE. A single rate cut or hike does little for the market. What does this have to do with the yen and the swissy?
The relative value of the usd/chf and the usd/jpy is much clearer on a chart than the gbp/usd. There seems to be a base forming with the dollar pairs. Regardless of the possibility of the base, the market is showing that it believes the jpy and chf are overvalued for the moment. To trade the gbp/jpy and gbp/chf simple trade it as though you were trading the usd/jpy and the usd/chf.
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