Technical Analysis

GBP/AUD shorts were the best trade this week

The Australian dollar was the top performer

The week straddled two different months and included a big rally in risk assets and plenty of Brexit news. As a result, the two big movers were the British pound and Australian dollar.

GBP/AUD shorts were a counter-trend trade, at least in the medium term. The paid had been rising since early December.

 

The latest pullback still falls within the uptrend and looks more like a buying opportunity than the beginning of more losses. On the flipside, the pound is vulnerable to Brexit headlines while AUD could continue to gain on trade hopes and risk appetite.

GBPAUD chart

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