GBP/AUD

With the U.K Composite PMI (June) and Services (PMI) (June) scheduled to be released later this morning, with a forecast of 47.6 and 47.0, coupled with the resurgence we’ve seen over the last few days in the British Pound, rallying to a high of 1.2530 against the U.S. Dollar, the expectation could be that if the figures announced are better than expected, in the short term, the bias on the Pound could remain bullish. However, the U.K. economy still faces a number of key challenges particularly with regards Brexit, the coronavirus effects on its economy and efforts to ease the lock down. From a technical perspective, the GBPAUD has declined by 14.32% from the high of 2.08532 on 19/03/2020 to a low of 1.78677 on 30/06/2020. Currently price is trading below key moving averages across multiple time frames and having moved below yesterdays’ close, the indication is to expect further weakness.