Sell the Pound, Buy Australian Dollar: TD Securities

The British Pound's 2021 uptrend against the Australian Dollar remains intact with an under-pressure UK currency picking up support at a critical support level in the previous week.

The British Pound is attempting to push higher against the Australian Dollar once again as the UK currency finds itself in the driver's seat at the start of the new week that sees a decidedly mixed and uncertain Aussie Dollar.

2021 is still likely to see the Australian Dollar appreciate says analysts at Australian lender Westpac, however a resumption of gains are tipped to be a feature of the second half of the year.

The Australian Dollar backed away from the edge of a precipice on Friday amid an evident improvement in investor sentiment, which turned GBP/AUD away from its year-to-date high set earlier this week, although the Aussie was struggling to reverse what is now a year-to-date loss against the U.S. Dollar.

The Australian Dollar will not receive any support from Reserve Bank of Australia policy in the foreseeable future shows new analysis from a leading investment bank, although the currency is now notably undervalued and this could provide a cushion.

Foreign exchange analysts at Barclays have updated clients with their latest foreign exchange forecasts, saying the British Pound is likely to remain strong while the Australian Dollar is prone to consolidation over coming weeks and months.