The fallout from market’s repositioning (from hawk to dove) is still reverberating among GBP pairs.
Against the Aussie Dollar, Sterling has slumped to near 1.78 at pixel time. This is the lowest level in two months. What is more worrying, however, is the chart pattern here, which is unmistakably toppy.
Given the lead in GBPCAD and GBPUSD – both down – traders will be keen to probe GBPAUD‘s downside potential, especially as there are multiple important UK macro data this week, including (a) GDP – Fri, (b) CPI – Wed, (c) Retail Sales – Thurs.
GBPAUD’s next lateral support is at 1.7600.
Jackson has over 10 years experience as a financial analyst. Previously a director of Stockcube Research as head of Investors Intelligence providing market timing advice and research to some of the world largest institutions and hedge funds.
Expertise: Global macroeconomic investment strategy, statistical backtesting, asset allocation, and cross-asset research.
Jackson has a PhD in Finance from Durham University.