The GBP/AUD pair fell initially during the course of the day on Thursday, but for the second day in a row ended up bouncing enough to form a nice-looking hammer. The hammer is sitting at the 1.83 level, which of course is a supportive level. With that, I feel fairly confident that this pair will continue to go higher but I also recognize the fact that the area just above is a bit choppy. However, today is a little bit different in the sense that the United Kingdom will release its GDP number for Q3. That could be reason enough for the British pound to have a fairly decent day anyway, and of course the better that it does, the better this pair will do.
The area below should continue to offer plenty of support though, so even short-term traders will be attractive to this market, buying pullbacks as they appear. The Australian dollar of course is in a lot of trouble in general, and that means that the pair will be naturally supported by that fact alone. We have formed what could be thought of as a bit of a bullish flag, meaning that if we break out to the upside we can really start to take off.
The GBP/AUD pair looks very interesting at this point.
When looking at this pair, you cannot look at it in a vacuum. The GBP/AUD pair looks very interesting at this point, as we are forming support at a very important level. Because of that, we may have a bit of a “knock on effect” when it comes to this pair, as British pound strength should transfer. After all, the Australian dollar isn’t going that well in general, as it simply is be and grinding sideways overall. I believe that this market will break higher, but I also recognize that it will be a bit of a choppy affair. This is more or less a longer-term type of opportunity, and therefore unless you have the ability to hold on through volatility, you may want to step aside. However, those of you who prefer to take longer-term trades, this could be the pair for you.
