GBPAUD momentum continues to fade, meaning risks are to the downside short-term.

GBPAUD remains in a multi-week uptrend, however, near-term turbulence inspired by Australia's central bank can offer opportunities in either direction.

The Pound to Australian Dollar exchange rate opened the holiday-shortened week near the month's highs and some of its best levels for more than a year but it could reach toward the sky if inflation recedes further in the direction of the Reserve Bank of Australia (RBA) target this Wednesday.

The Pound to Australian Dollar exchange rate entered the new week around the middle of a narrow May month range but could be more volatile in the days ahead while on a multi-week basis price action could potentially take Sterling anywhere within a much wider 1.82 to 1.95 range. 

The Australian Dollar will this week remain at risk of further weakness in global commodity prices, however, a busy domestic calendar will also provide some potential volatility in the Pound to Australian Dollar exchange rate (GBP/AUD).

GBPAUD has bounced ahead of the weekend but a peaking of Bank of England rate hike expectations and a slowing economic data pulse could mean fresh 2023 highs are out of reach in the near term.

The Pound to Australian Dollar rate edged higher in the opening session of a holiday-shortened week but any further gains could be limited with GBP/AUD potentially listing to the downside in the wake of Thursday's Bank of England (BoE) forecast update and interest rate decision.

The Pound to Australian Dollar exchange rate has rallied to some of its best levels since the onset of the pandemic only to be obstructed by a major technical resistance overhead on the charts, which could now force Sterling to consolidate in a rough 1.8855 and 1.9085 range this week. 

GBP/AUD is in an uptrend with technical signals suggesting more gains are incoming.

GBP/AUD supported at 1.84-1.8450, iron ore decline underpins AUD weakness, inflation is this week's hot ticket.

The Australian Dollar has been one of the biggest fallers among major currencies this year but downgraded forecasts from Commonwealth Bank of Australia (CBA) suggest it could fall further against some currencies and remain an underperformer in the months ahead.

GBP/AUD could be prone to near-term weakness according to a new assessment from strategists at UBS.

GBP/AUD could approach 1.90 in the weeks ahead and might also find itself well-supported above roughly 1.8350 if the more favourable relative interest rate outlook is sustained.

GBP/AUD risking corrective setback from 13-month high if retail sales or CPI prompts increase in RBA rate pricing.

The Pound to Australian Dollar exchange rate entered the new week on the front foot but with Federal Reserve (Fed) and Bank of England (BoE) interest rate decisions still looming ahead the risk is of GBP/AUD rising further in a possible upward breakout on the charts over the coming days.

The Pound to Australian Dollar exchange rate stalled at one-year-highs before reversing to the downside early in the new week but would risk a deeper corrective setback if clarity emerges around the Australian employment situation or if UK economic developments hamstring Sterling in the days ahead. 

Foreign exchange strategists at a leading Australian bank say the Pound can extend its recent gains against the Australian Dollar.

GBP/AUD could have scope to test above 1.79 short-term.

GBP/AUD under pressure & risking further losses short-term