AUD to GBP is under selling pressure for third consecutive trading session as the pair is driven by the fundamental data coming out of Australia and UK. Australia’s Westpac Consumer Confidence data for January, came in at -1.8% to 93.4 in January from 95.1 below the expectations of a drop of-0.8%.
Bushfires, had the dominant influence on Sentiment, other factors should have been supportive. Bullish momentum in financial markets and the global economy has improved, with the ASX 200 up by 6% since the start of the year.
On the other side of the equation the employment in U.K. increased by 208k in November. The unemployment rate was steady at 3.8%. Increased hiring activity came with higher wage growth at 3.2 percent topping forecasts of 3.1%. The BOE interest rate decision will drive the pair in the upcoming weeks. The release of UK PMIs next Friday might provide the catalyst for the Bank of England’s upcoming policy decision.
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AUD to GBP Technical Outlook
AUDGBP hits today 10-day lows as the pressure to Aussies dollar gains momentum. AUDGBP managed to rebound from three years low at 0.5121 but the bulls run out of steam below the 100 days moving average.
On the downside immediate support will be met at 0.5233 the daily low. A break below might increase the selling pressures for a test of the January low at 0.5219. Next support area stands at 0.5157 the low from December 17th.
On the other hand initial resistance for AUD to GBP pair stands at 0.5249 the daily high. If AUDGBP pair surpasses that level the next target for the bulls would be the 50-day moving average at 0.5266. Yesterday’s high at 0.5294 is the next supply zone for the pair.
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