GBP/AUD is confirming a H&S top along with RSI and momentum divergences setting up for a move to the down side with a potential target at 1.8720.
For AUD, economic data has been resilient with some upside pressure on employment and inflation which brought RBA back to hiking rates in June (albeit with a further pause in July).
Fundamentally GBP does not feel very sound - growth is anaemic and PMI disappointed this morning and while inflation has shown some early signs of easing, consumer spending is big driver of growth which is not going to be helped with further rate hikes.
All this makes the up trend in place since Oct'22 vulnerable to a pull back.
Key risk events are Aussie inflation data on Wed and RBA and BOE rate decisions next week.
For AUD, economic data has been resilient with some upside pressure on employment and inflation which brought RBA back to hiking rates in June (albeit with a further pause in July).
Fundamentally GBP does not feel very sound - growth is anaemic and PMI disappointed this morning and while inflation has shown some early signs of easing, consumer spending is big driver of growth which is not going to be helped with further rate hikes.
All this makes the up trend in place since Oct'22 vulnerable to a pull back.
Key risk events are Aussie inflation data on Wed and RBA and BOE rate decisions next week.