Key Level to Monitor
Price action in GBPAUD is looking interesting here. The pair has been stuck in a large 1.7218 – 1.7811 range since late March/ early April. The pair is now testing the lower range level once again and, while we are seeing strong bullish divergence on momentum studies, a break lower cannot be ruled out. Given the broader bearish trend, the preference near-term is for a downside break targeting a move down to 1.6726. With the retail market around 75% long, there is plenty of room for a drop lower here. Given how long this range has persisted, its necessary to be vigilant and nimble on any signs of a false break, sticking to candle closes only is good practice here.
Keep an Eye On
The RBA has turned firmly hawkish in recent months, hiking rates at an increasingly quicker pace while signalling further hikes this year as likely. The BOE, however, has been a little slower with its own tightening and has sounded more uncertain and more cautious. If this theme continues, we can expect GBPAUD to remain under pressure near-term.
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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.