GBPAUD Higher Despite Sterling Threats on Many Fronts

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GBPAUD was higher on Tuesday despite the U.K. currency facing a multitude of risks. Traders are likely pricing in the good news for the Aussie after a recent rally and are now positioning for a potential Brexit trade deal.

The Pound has managed to shake off yesterday’s drama, which saw the market reacting to strict lockdowns in the U.K. over Christmas due to a new virus strain and 40 countries blocking flights to the country over fears that they may import further cases. P.M. Johnson is now looking to secure an 11th-hour trade deal as negotiators seek to give Europe some concessions over fishing quotas.

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Last week saw strength in the AUD to GBP after both countries released employment numbers. The U.K. reported a loss of 144k jobs after analysts forecast -250k, but the numbers are still worse than any quarter during the last financial crisis. Australian employment saw a surprise gain of 90k compared to projections for 50k. This will keep the Australian Reserve Bank happy that the country’s recovery is on track.   

GBPAUD Technical Outlook

GBPAUD saw a bottom last week at 1.7500 and the pair is now pushing to test the 1.7800 level. Further gains here could move to test the 1.80-8100. Support would be another test of the 1.7500 level, where another bounce would likely be a medium-term low. The Investing Cube team is currently available to help all levels of traders with the Forex Trading Course or one-to-one coaching

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GBPAUD Daily Chart

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