The pound has been strengthening on the back of expectations that the Bank of England will soon put up its base rate. The Aussie dollar is suffering from the low price of iron ore. Due to this I expect the GBP/AUD to grow along the trend to 2.1967 by the 15th August.
In an idea from 22nd June, I considered a far reaching growth along the trend from 2.0420 to 2.1106. At the moment the rate stands at 2.1388 against a 2.1528 maximum. Taking into account that the Aussie is suffering from the low price of iron ore and weak Chinese statistics, coupled with the Bank of England planning to put up its rates by the end of this year or start of the next, it’s pretty logical to suggest that the growth on the GBP/AUD will continue.
The GBP/AUD stopped at 223.6% from a fall from 2.0026 to 1.8826. I reckon that the pound will correct to 2.1332/50 and growth will resume to 2.1967 (261.8% from 2.0026 to 1.8826). If we make a projection from the 1.8663 and 2.0026 peaks, the line meets the 261.8% level by 15th August. This is the exact date calculated. The target is 2.1967.
