GBP/AUD

There is a compelling case for the exchange rate moving up to a target at 1.8000 in the short to medium term, from the current 1.69s.

Pressure on pair may also come from US Fed acting cautiously and Bank of England taking a still-defensive stance.

The Aussie is undervalued versus its main contender the US Dollar but December’s expected interest rate rise from the Federal Reserve is likely to keep upside restricted.

GBP/AUD is expected to rise after Australian data disappointed and commodity weakness into the end of November has weighed on the outlook for the Aussie Dollar.

The GBP/AUD has rallied to within a few pips of our initial upside target at 1.7000 and looks set to continue rising once it resumes its uptrend.

The GBP/AUD pair has broken above key resistance provided by the major trend-line and is not consolidating ahead of another possible leg higher.

The GBP/AUD's down-trend dominates despite early signs of a fight back.