The British Pound has surged by 5.11% in value against the Australian Dollar since January 15. The currency pair tested the upper boundary of an ascending channel pattern at 1.9755 on January 31.
Currently, the exchange rate is testing a support level formed by the 50– period simple moving average at 1.9336.
If the support level holds, the GBP/AUD pair will most likely continue to edge higher in the ascending channel pattern within this week’s trading sessions.
However, if the currency exchange rate breaks the 50– period SMA, a decline towards a support cluster formed by the 200– period SMA and the weekly S2 at 1.8937 could be expected during the following trading sessions.
