The Pound is cheap, but how do we justify buying?

FX:GBPAUD   British Pound / Australian Dollar
The Pound has been the much maligned currency of the last 2 years. The UK economy bombed from the fasted growing in the G-7 to the weakest and Brexit negotiations continue to favour the either European Union or a No Deal scenario.
All this being said the UK economy isn't quite as weak as the currency suggests. For this reason I am always on the look out for a good place to enter a long with the view of holding through the last stage of the Brexit negotiations. The benefit of this is, if the right price can be found and a good deal surprisingly emerges, the pound will rocket.
Looking at the Weekly chart, we see mixed signals. There is a potential distribution pattern, giving the Pound the look of a currency that will weaken further. However last weeks Hammer gives us a strong indication that Buyers sit in wait in this area. There is also a long term area of support here so waiting for the shorter timeframes to generate a good reason to buy, may be the catalyst the GBP/AUD needs for a long.


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