Pound versus Australian Dollar: Technical forecasts and predictions for GBP-AUD

 For the sake of reference we note that the pound versus Australian dollar exchange rate is currently a healthy 1.35 pct higher on Tuesday night's closing rate; GBP-AUD is at 1.6086.

Looking at the price action in GBP-AUD over the short-date period (2-6 weeks) we can see just how favourable the picture now is for sterling.

The charts show that we have 4 bullish events stacked up against just one bearish event; the most recent events were formed on the 4th of June when the currency pair closed at 1.5870.

We would forecast further gains in the short-term owing to the powerful momentum behind the British pound and the inherent weakness now being displayed by the Australian currency.

Intermediate-term outlook for Pound versus Australian dollar

The longer-dated picture 6 weeks - 9 months is, like the short-term, overwhelmingly in favour of the British pound owing to recent momentum.

We note 5 bullish technical events versus 1 bearish event - the bearish event was the formation of a Double Moving Average Crossover (21-week 50-week) in February; however since the 22nd of April favour has swung firmly in favour of the British pound.

According to Recognia the nearest target for this currency pair in this timeframe is the 1.5300 level.

Resistance is forecasted at 1.5880.

The charts tell us that the outlook firmly favours the British pound at present in both the short and long-term picture; thus it would be foolish to bet against the GBP.