GBPAUD Trading At 3-Year Highs on UK Elections Poll, Disappointing Forex News from AU

GBPAUD tapped its highest level since July 2016 at 1.9141 as today’s trading started. As of this writing, the currency pair has steadied above last week’s highs at 1.9110.

In terms of the Aus dollar to pound exchange rate, it is at 0.5229 as of today, November 28, 2019.

The initial spike was brought about by the results of YouGov’s poll. Results show that incumbent Prime Minister and leader of the Conservatives Boris Johnson will get a 68-seat majority, ahead of Jeremy Corbyn and his Labour party, in the upcoming UK elections. This poll was particularly important because it was able to predict a hung parliament that happened in 2017. Therefore, given the poll’s credibility, this latest release sparked optimism that a Brexit plan may soon be passed.

Meanwhile, in the Land Down Under, data on private capital expenditure for the third quarter missed forecasts at -0.2% versus 0.0%. The report is widely seen as a leading indicator of economic health and the contraction may have dampened demand for the Aussie as it hints that the RBA could soon be forced to ease more.

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GBPAUD Outlook

On the weekly chart of GBPAUD, we can see that the currency pair has been trading in a rising channel. This is evidenced by the higher highs and the higher lows we have seen since September 2016.

If there are enough buyers in today’s trading, the next resistance level for GBPAUD is at 1.9997 where it made highs in February 2015. On the other hand, if sellers dominate today’s trading, we could see a pullback. The currency pair could fall to support at 1.8835 where it found resistance in March 10 and April 28.Download our latest quarterly market outlook for our longer-term trade ideas.

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