GBP/AUD condemned to fall? 1.69 front lost

FXstreet.com (Chicago) - GBP/AUD continues extending the downward trendline that started at the beginning of the month and remains capped below the 1.69 front attempting to hold on to bearish pressure ahead of data releases and the BoE interest rate decision due later in the day.

Earlier in the UK, the pound got smashed losing pips heavily against most currency pairs on weaker than expected data. Industrial production was -1.5% vs. expected -0.6% (YoY) while manufacturing production was -0.2% vs. expected 1%. The total trade balance disappointed at -3.320B vs. estimates at -2.050B pounds. In Australia, job market data is expected at 0:30 GMT.

GBP/AUD Technical Levels


Technically speaking, the pair is offered at 1.6882 and trades between supports aligned at 1.6864 (August 12th lows), 1.6838 (session lows) ahead of 1.6817 (August 11th lows) and the resistances set at 1.70 (September 24th lows) and 1.7050 (September 24th highs) and 1.6951 (September 11th lows). According to the FXstreet.com trend index, the pair is slightly bearish on one-hour timeframe analysis below the EMA20.

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