GBP/AUD – Funda Should be On its Side

Earlier this morning we went long GBP/AUD. Since then it has fallen off its highs but we should have data on our side in the next 24 hours. Australian employment numbers are due for release tonight and a retracement is expected after last month’s strong rise. The RBA expressed caution about the labor market and it will very difficult for full time jobs to match the prior month’s increase. Retail sales in the UK should also rebound after the decline in March. Wages are on the rise and according to the British Retail Consortium, spending was strong last month.

Technically, GBP/AUD is still holding above the 20-day SMA while the 50/200 day SMA cross signals the possibility of renewed gains. All we are looking for is a move back above 1.75.