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British Pound Longs Have a Chance to Reload - GBP/AUD and GBP/USD

Christopher Vecchio

Talking Points:

- GBPUSD makes progress despite disappointing UK retail sales.

- GBPAUD trapped in sideways range - breaks possible on either 1.8400 or 1.8600.

- Significant data absent from calendar on Friday.

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Weaker than expected retail sales couldn't knock back the British Pound, which is nearing breakout points versus the Australian and US Dollars.

A H4 close above $1.6690/700 could signal a return towards 1.6820, but a breach of 1.6600/20 could indicate a larger top in GBPUSD.

For GBPAUD, a range between A$1.8400-1.8600 has developed since February 12 - bias is to the upside in context of the downtrend from late-December breaking, will look to add longs above 1.8600/50 and close the position at 1.8400.

--- Written by Christopher Vecchio, Currency Analyst

To contact Christopher Vecchio, e-mail cvecchio@dailyfx.com

Follow him on Twitter at @CVecchioFX

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