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Forex pairs in this Article » GBP/USD (Barcelona) - The GBP/AUD cross is telling the very unambiguous story of British Pound strength and Aussie Dollar weakness. Very short-term, the cross is overbought and could use at least some sideways action.

GBP/AUD get very light data flow this week – at least until Friday

The two countries in the world whose leaders are unapologetic for their intentions to weigh down their own currency are Japan and Australia. Meanwhile, one of the countries that has become a bullish pick of a majority of analysts is Great Britain. This combination has basically created a runaway bullish chart in the GBP/AUD. There is no real resistance until 1.9670 – only Fibonacci projections until then.

This week’s data flow that may influence GBP/AUD includes:

• Monday: British Housing Prices;
• Tuesday: Aussie Private Sector Credit;
• Wednesday: Everything closed for New Year’s
• Thursday: Aussie Performance of Manufacturing Index; British Manufacturing PMI data
• Friday: British Consumer Credit; British Mortgage Approvals; British Lending Data; British Construction PMI.

Technical outlook for GBP/AUD

Technicians say the long-term upside target for GBP/AUD appears to be all the way up at 1.9670. Obviously, there will be lots of starts and stops on the way up to that target. The first resistance for the cross comes in at the Fibonacci projection of 1.8729. Support for GBP/AUD comes in at the 12/23 low of 1.8269 and is followed up by the 12/9 low of 1.7892.
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