The GBP/AUD has been descending steadily since making a 3 month high on May 23 of this year and has now broken the 3 month low as well as the low established 2 weeks ago at 1.5069. In the second half of Asian trading the pair has stabilized at around 1.5066 but is bearish again leading up to the London Open. The most likely target for this pair os the 1.5000 level where price rebounded from twice in 2010 but may be heading lower, possible retesting the all time low at 1.4554 in the weeks to come. From an intra-day perspective, support levels can be seen at 1.5058, 1.5016 & 1.4944 with resistance at 1.5130, 1.5170 + 1.5244. The weekly pivot is at 1.5203. If the Aussie Dollar continues to strengthen, we can expect this pair to continue to fall, but be mindful of GDP Retail Sales numbers being released at 9:30AM London Time. There are also 3 major news events in the USA that could strengthen the US Dollar and weaken the AUD. Unemployment Claims, Existing Home Sales and Philly Fed Manufacturing Index are all being released today in the USA.
Happy Trading!