GBPAUD At Breakout Point
GBPAUD is at an interesting point here where the ascending triangle pattern, which has frame the last few months of price action, looks poised to break higher. The break above the 1.8064 base found selling interest into the initial test of 1.8203, the resistance line of the pattern. However, price is testing the region once again here. GBP and AUD are both gaining against the Dollar currently. However, with the retail market holding a more than 90% short in GBPAUD, there is room for a push higher here, With the MACD and RSI supportive also. Bull targets to note are 1.8316 and 1.8461 above.
Key Data to Watch
GBP employment data today has come out strong and while the RBA minute showed that the bank is optimistic over the economic outlook, they reaffirmed the bank’s commitment to maintaining and even extending easing. Additionally, rising inflation expectations are likely to create a headwind for risk assets, including AUD, while GBP looks better place to benefit from re-opening optimism. Aussie unemployment data on Thursday will be the next key release to watch.
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Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to the author, and not to the author’s employer, organization, committee or other group or individual or company.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.