GBPAUD Turns Higher
The recent block of consolidation in GBPAUD is finally resolving now with price breaking out above the 1.8438 level. A solid string of data release from the UK this week (labour market and inflation) have seen GBP swing back into favour as BOE tightening expectations ratchet higher. On the other hand, AUD has come under pressure from a lack of hawkish comments from the RBA as well as the uptick in USD. With the retail market around 70% short, there is plenty of room for this move to continue. Bulls can stay long above 1.8438 targeting 1.8578 initially and 1.8739 thereafter.
Keep An Eye On
UK retail sales on Friday will be the next key reading for GBP. A further set of strong data would send GBP firmly higher into next week. Alongside UK data, keep an eye on USD moves. The current rally is hitting AUD more than GBP and while that continues GBPAUD has room to advance.
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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.