We have an interesting technical situation on GBP/AUD. The daily chart shows that the correction from last week has only led to a slight rise to the low from mid-February. The beginning of the week brings significant decreases in excess of the July minima and the previous low level. Everything points to the fact that the price should move to the level of this year’s minimum around 1.76. Interestingly, this support coincides with the bottom edge of the channel, perfectly visible at the higher weekly interval.
The Pound’s weakness is still influenced by the Brexit , we are still uncertain about the final solution of this issue. Recently, there have also been suggestions from the members of the Central Bank about possible needs for interest rate cuts. All of this points to a weakening of the British currency. We have a clearer situation on the side of the Australian dollar. Yesterday’s data from the Chinese economy came out surprisingly well, which translated into a strengthening of the currency. It seems, therefore, that the downward trend we have seen since the beginning of May should be continued in the near future.
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