The GBP/AUD pair has recently shifted its trajectory, transitioning from a recovery phase initiated at 1.08600 in January to a downward trend. Currently hovering around the 1.9158 level, the pair encounters significant resistance marked by the Point of Control (POC) value and Fibonacci levels. This convergence suggests the potential for a pullback before resuming its upward momentum. Additionally, the Relative Strength Index (RSI) indicates proximity to oversold conditions, further supporting the anticipation of a correction. In response, we've opted to position two Buy limits in anticipation of the impending reversal.
The UK manufacturing sector delivered a surprising expansion in March, following a contraction spanning 20 consecutive months. This growth was primarily fueled by robust domestic demand, elevating business optimism to its highest level since April 2023. Notably, 58% of manufacturers anticipate an increase in production levels over the next 12 months. Concurrently, British house prices surged by 1.6% in March, marking the sharpest increase since December 2022. Despite prevailing higher interest rates, the real estate sector demonstrates resilience, contributing to overall economic stability.
In light of these developments, we foresee a potential pullback in the GBP/AUD pair, followed by a resumption of its upward trajectory.
That's interesting. I noticed you used the Fibonacci retracement to line up with the support level—a good kind of confluence. Let's see how this works out. I'll be keeping an eye on it.