GBP/AUD Forecast: June 9th, 2015

Chris looks at the upcoming Tuesday session in the forex markets in our GBP/AUD forecast, with the market presently testing the vital 2.0000 level. Many of you may have struggled with this pair recently, assuming that you even have been paying attention. This is a currency pair that features 2 major currencies, so it can be traded with relative ease. Because of this, you should not shy away from this pair, although it can be a bit volatile.

When looking at the GBP/USD pair, and the AUD/USD pair, it is obvious that the British pound is stronger than the Australian dollar, as the best way to measure strength in a particular currency is to measure it against the US dollar. While both of them have had a positive move over the last day or two, the reality is that the British pound has been moving higher for a longer amount of time. In other words, it is generally stronger. However, we are near a major barrier.

2.0000 is massive

When you look at the longer-term charts, specifically the monthly chart, you can see that the 2.0000 level was massive support in the past. With that, if we can break well above this area and hold onto the gains, this market should continue to go much higher. After all, the 2.0000 level is not exactly unfamiliar territory, and with the way that the British pound has been grinding higher lately, it wouldn’t exactly surprising either Adrian or myself if this market continues to grind its way towards the 2.5000 level over the next year or two. In fact, this is one of our favorite trades if we can get a significant break higher.

We also recognize that the 1.9900 level is acting as a bit of support, and as a result, if we can get some type of supportive candle, we would be buyers. Ultimately, we have no interest in selling this pair at the moment, but would certainly have to keep an open mind if we were to drop a couple of handles. In the meantime, this is a market that looks very bullish and as a result, we prefer to buy this market.