Investing.com - Financial Markets Worldwide
💎 Bargain Hunter: Undervalued stocks with massive upside potentialGet the list

AUD's Slide Versus the British Pound Accelerates

ByDr. Duru
Published 03/28/2012, 02:22 AM
British Pound Australian Dollar
-0.14%

Last week I asked whether time is running out for the Australian dollar versus the British pound. Apparently, the answer is yes.

The very next day, the GBP/AUD currency pair surged upward through the previous trading channel. Only the 200-day moving average (DMA) stopped the momentum. But even that reprieve looks very temporary.

As of the time of writing, GBP/AUD is already retesting the 200DMA, and I do not expect the resistance to last much longer.
<span class=GBP/AUD" title="GBP/AUD" width="660" height="397">
The surge out of the channel represents an acceleration of the building uptrend.

 If recent history is any guide, I expect GBP/AUD to rise relatively quickly into the 1.55-1.60 range. I will look to trade the Australian dollar long again around those levels given my bearishness on the British pound. The standard wildcards of economic releases and statements of monetary policy are likely more than ever biased against the Australian dollar given increasing nervousness about China’s economy.

Be careful out there!

Full disclosure: no positions

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads.

Which stock should you buy in your very next trade?

AI computing powers are changing the stock market. Investing.com's ProPicks AI includes 6 winning stock portfolios chosen by our advanced AI. In 2024 alone, ProPicks AI identified 2 stocks that surged over 150%, 4 additional stocks that leaped over 30%, and 3 more that climbed over 25%. Which stock will be the next to soar?

Unlock ProPicks AI
Read Next

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.