The GBP/AUD pair initially fell during the course of the session on Friday, and then turned back around to form a rather supportive looking hammer. We are bringing up against the 2.15 level, which makes this market look ready to break out. If we get above that level, I am a buyer for this pair as I believe that the British pound should continue to strengthen overall. After all, it is holding its own against the US dollar and looks fairly healthy. On the other hand, the Australian dollar looks absolutely miserable against most currencies, and as a result it makes sense that we will continue to fall in value as far as the Aussie is concerned.
Even gold can’t help
Gold markets exploded to the upside over the last several sessions, but even that did not handle the bearish pressure against the Australian dollar, as we are simply seeing this market punish the Aussie for the lack of growth in Asia. There is a serious lack of demand for commodities in Asia, and that of course affects the Australians as they tend to provide a lot of the raw materials for construction projects in places like China, Japan, and of course the rest of Asia itself.
If we break above the 2.150, I don’t see any reason why we don’t go to the 2.20 level given enough time. Granted, there will be a volatile move here and there, but every time we pullback we should get pressure to the upside and therefore offer you buying opportunities or better yet opportunities to add to your longer-term position to the upside. After all, pyramiding is the way to make serious profits in a market that is trending and a nice correction like this particular pair is. I believe that there’s no way to sell this market, and I do expect this market to explode to the upside given enough time.
