GBPAUD was pointing lower for a second day as the rally on hopes of a Brexit deal starts to fade once more. U.K. negotiators have criticized the EU for making unreasonable demands over fishing rights in British waters.
The Brexit situation is looking set to drag on for yet another week after Sunday and Wednesday added to the list of make-or-break deadlines. Politicians are set to go on a recess but P.M. Boris Johnson has said that he could call them back if a vote was needed on an agreement. The December 31st deadline is now looming and without a deal, trade between both parties will be subject to tariffs.
The Bank of England kept interest rates and stimulus on hold yesterday as they await the outcome of Brexit. The central bank has previously hinted that negative rates could be coming in the event of a No Deal outcome. Yesterday also saw a surprise jump in employment numbers for the Aussie economy with a reading of 90k new jobs compared to forecasts of 50k. This saw a drop in the unemployment rate to 6.8% from 7%. GBPAUD was trading at 1.7800.
GBPAUD Technical Outlook
The GBPAUD crashed from 1.8000 to 1.5000 and the pair is now looking to bounce higher from here. The targets and levels are the same with 1.8000 being resistance and 1.7500 being the support. 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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