Our free forex signals service today looks at the GBP/AUD and we have the entry, stop and take profits levels for you.
The GBP/AUD pair is attempting to rise after finding an interim bottom near 1.8773 today. The British Pound is vulnerable in the overall scenario but the Australian Dollar seems weaker than the Pound.
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The British Pound fell across the board yesterday as the Greenback strength triggered aggressive selling. However, the Australian Dollar maintained a mildly bullish tone on Thursday. The better-than-expected UK GDP data failed to lend any support to the Pound. Moreover, upbeat US PPI figures triggered further selling in the British Pound.
Another reason behind the decline in the British Pound is renewed Brexit concerns that continue to linger on the heads. Reuters describes Brexit jitter and round-robin traffic (RoRo) between Irish and UK ports. The news reports: “Imposing controls on some goods after neighboring UK left the EU’s trade orbit on December 31, UK imports fell 35% in the first five months of 2021, while shipping routes to mainland Europe more than doubled.
Furthermore, UK deaths and infections are more than eight times higher than in early May. Thursday was the country’s highest daily number of cases since July 23, with 33,074.
On Friday, the Australian Dollar looks feeble and may not hold on to yesterday’s meagre gains. The AUD/USD pair is dominated by the bears and may aim to test YTD lows under the 0.7300 mark. Market awaits the RBA policy statement due on Tuesday next week that may provide some directional bias to the Australian Dollar.
However, the GBP/AUD pair is largely led by the strength or weakness of the British Pound. After a big bearish move, we can expect a corrective wave on the upside. The correction can be higher than the expected. In the absence of any major data on the day, British Pound will significantly depend on the coronavirus updates and Brexit headlines.
GBP/AUD free forex signals
Instrument: GBP/AUD
Order: BUY STOP
Entry price: 1.8871
Stop Loss: 1.8741
TP1: 1.9066
Our Risk Setting: 1%
Risk / Reward Ratio: 1:1.5
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Saqib Iqbal
