The forecast for the Pound vs. Australian Dollar exchange rate in the week commencing May 06.

The Pound's fortunes against the Australian Dollar have flipped into positive, but we will be watching Chinese manufacturing numbers to provide further direction this week.

The Pound is up against the Australian Dollar at the start of the week but we note the near-term outlook remains negative for this exchange rate and therefore look for further losses.

The Pound is stuck in a technical downtrend against the Australian Dollar which is expected to extend. UK employment data and broader investor sentiment will be the factors traders will be eyeing over coming days.

Despite A deadlock in GBP/AUD price action of late, our technical analysis of the pair is actually rather bearish.

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 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.

The technical outlook for GBP/AUD is mixed at this point - whilst the pair remains in an established short-term uptrend it is vulnerable to weakness because of a ‘broadening formation’ or ‘loudspeaker’ pattern which has developed.

Pound Sterling is configured for further advances against the Australian Dollar on a technical basis, but the two key fundamental risks to keep in mind are a potential parliamentary vote on the Brexit deal in the UK and the Reserve Bank of Australia's March policy meeting.

Pound Sterling is poised for further gains against the Australian Dollar on a technical basis, but geopolitical risks could impact the Aussie while a set of key votes on Brexit could induce volatility in Sterling.

The Pound-to-Australian Dollar rate is trading at 1.8130 early on Tuesday of the new week after losing -1.10% last week, but is poised to edge higher over the coming days.

The technical outlook for GBP/AUD is marginally bullish as the pair is rising in a clear ascending channel which is expected to continue along the lines of the old adage that ‘the trend is your friend’. Inflation and GDP data forms the primary focus for Sterling in the week ahead while Chinese trade data will be watched by Aussie traders.

From a technical perspective, the immediate outlook for GBP/AUD is probably marginally bearish after the big sell-off last week. However, in the medium-term we are bullish.

The Pound is positioned for further gains against the Australian Dollar from a technical perspective, however the outlook for the GBP/AUD exchange rate will rest with a series of Brexit votes in the British parliament on Tuesday and the performance of Chinese stock markets.

The Pound-Australian Dollar exchange rate retains a mild bullish bias in the short-term and in the week ahead the pair will be taking cues from Chinese data and Brexit developments.

The monthly chart shows GBP/AUD hitting a wall of resistance at the level of the formidable 50-month moving average which has repeatedly rejected attempts to penetrate it ever since March 2018. Whilst, of course, it could break higher, it would have to break clearly above the 1.8732 highs for confirmation.

From a technical perspective the Pound is preferred over the Australian Dollar next week owing to an entrenched uptrend. However, political anxiety out of the UK could well ensure general GBP volatility.

The Australian Dollar set a new December low last week as international risk appetites waned but events in the global arena are now expected to provide breathing space to the Antipodean currency during the week ahead. 

The probabilities now marginally favour the start of a short-term uptrend in the GBP/AUD exchange rate over the week ahead.

From both a fundamental and technical point of view, the Australian Dollar is tipped to outperform the British Pound over coming days.