GBPAUD On The Move

The breakout trade in GBPAUD has hit its first target at the 1.8578 level, where the channel top is offering additional resistance. Despite the moves lower in GBP today, GBPAUD is holding up currently, with price action suggesting there is still good demand for the pair. The retail community is currently around 80% long suggesting plenty of scope for a continuation higher towards the next target at 1.8739 while we hold above the 1.8438 breakout base.

Keep An Eye On

Today’s political meeting over the Northern Ireland Protocol has the potential to create volatility in GBP. However, given that USD strength is weighing on AUD more than GBP and that, broadly speaking, central bank expectations are far more hawkish for the BOE than the RBA in the near term, GBPAUD has the ingredients to remain a good long trade into next week.