The Pound has risen up to a key watershed level against the Australian Dollar which if broken could offer potentially much better exchange rates.
Looking at the Pound-to-Australian Dollar exchange rate we note the recent uptrend is nearing a key level which if broken would open the door to notably higher rates.
The level comes in the form of a downward-sloping trendline which has resulted from the Pound's long-term decline against the Aussie Dollar.
Trendlines tend to encourage binary outcomes: either a breakout above or a recapitulation below, and this one is no different:
The short-term trend remains up ever since the recovery from the August lows and so we continue to favour more upside and a breakout higher, but only if confirmation is gained from a break above the September 28 highs at 1.7183.
Such a move would be expected to probably reach the 1.7300 level - although it could go even higher in the absence of any major chart resistance levels.
Alternatively, a move below the 1.6776 lows could prompt a bearish break lower, to a target at the 200-day moving average, which is a likely to break its fall at 1.6670.
Get up to 5% more foreign exchange by using a specialist provider by getting closer to the real market rate and avoid the gaping spreads charged by your bank for international payments. Learn more here.