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fozzy999
Apr 19, 2015 1:24 AM

GBPAUD Long trade, bounce off strong resistance trend line Long

British Pound/Australian DollarFXCM

Description

Decreasing growth in the Chinese economy, means lower demand for Australia's iron ore and coal (of which prices are declining), therefore Australia is experiencing over supply issues and a surplus in output capacity. Unemployment is rising, and recent monetary policy is dovish. All these factors point to this pair being very bullish.
Comments
SteveTobin
I like the technical pattern but am concerned about the economic view. The UK election due soon has such potential that it could easily de rail worries on the Australian front. I do agree that the solid bull trend will be hard to break but will remain on the sidelines until the politics is sorted. A hung parliament could put the GBP into a tail spin and A Labour government might well take a 1000 pips away.
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