The Pound-to-Australian-Dollar Rate in the Week Ahead: Bullish Short-term Outlook 

The Pound-to-Australian-Dollar rate is set to beging trading around 1.8648 Sunday after falling more than one percent in the previous week, although studies of the charts suggest the outlook for the days ahead is a bullish one.

The Australian Dollar was supported on Thursday by jobs data that appeared to show the Aussie labour market in good health and by Federal Reserve hints that it will not raise U.S. interest rates this year, but financial markets are still concerned the Reserve Bank of Australia (RBA) could cut its rate this year. 

The Pound was trading higher versus the Australian Dollar on Tuesday after the Reserve Bank of Australia (RBA) released the minutes from its March meeting that made dovish reading for investors, although the exchange rate could rise further still if Westpac is right with its latest interest rate forecasts.

The Pound-to-Australian-Dollar rate is to begin trading around 1.8746 Sunday after rising by 1.7% in the previous week, although there are increasingly bearish signals coming from the charts that suggest, sooner or later, the market will see a correction lower.

Our latest technical studies suggest the Pound could lose ground against the Aussie following a strong run that leaves it looking overbought.

The Australian Dollar followed the Chinese Renmimbi lower Thursday after official data showed the latter's economy on the rocks, though the Antipodean unit is still likely to face further selling pressure over the coming weeks, according to analysts at HSBC. 

The Australian Dollar weakened in a risk averse market Wednesday, helping the Pound-to-Australian-Dollar rate to recover onto a firmer footing, although analysts say the Brexit saga playing out in London is a double edged sword for the Antipodean and British currencies.

The Pound-to-Australian-Dollar rate remained within sight of multi-month highs Tuesday after having seen some of its largest swings of the New Year during the morning session, and analysts are warning that this volalitility could continue for a while yet.