GBP/AUD Tests Resistance Near 1.83 Amid Healthy Inflation Forecast in the UK

Australia – CB Leading Index

On Tuesday, at GMT 2:30 p.m., the Conference Board Inc will release the month-over-month leading index for Australia. It measures the changes in the level of a composite index based seven other major fundamental indicators.

The CB leading index aggregates some of the other indicator data. So, binary options traders consider this to be an important representation of the overall Australian economy. However, since most of these data are previously released, the CB leading index tends to have a minimized immediate market impact.

Last month, the CB leading index came out at 0.2%. If the uptrend continues, it will likely have a positive impact on the Australian Dollar against other major currencies.

United Kingdom – Consumer Price Index

On Wednesday, at GMT 8:30 a.m., the UK’s Office for National Statistics will release the year-over-year Consumer Price Index (CPI). It measures the changes in the price of goods and services acquired by consumers.

The CPI basically measures the inflation level in the economy. This data is considered binary options investors as one of the most important leading indicators of the overall economic health.

Last month, the UK’s CPI (y/y) increased by 2.5%, and this month the forecast is currently set at a 2.4% growth.

GBP/AUD Forecast

Since breaking above the downtrend line on August 23, the GBP/AUD has climbed up by around 680 pips. However, after reaching near the 1.8375 level, it found a strong resistance. Over the last week, the GBP/AUD started a retracement and fell below the pivot zone around 1.8300. However, earlier today, the GBP/AUD climbed up to the 1.8300 level. Currently, it appears to be testing the 1.8300 level once again.

The Australian CB Leading Index went up 0.2%. However, the UK’s inflation rate will like come out at 2.4% last month, which is very close to the 2.5% in the previous month. We believe it would set a bullish fundamental outlook for the GBP/AUD this week. Therefore, if the GBP/AUD closes above the resistance near 1.8300, it would likely attract additional bullish momentum in the market.

Hence, Australian binary options traders should look out for trading opportunities above this major resistance level around 1.8300.

Asif worked as a prop trader for almost a decade, and later he managed trading operations for one of the largest foreign exchange strategy developers in Europe. Currently, he works as a trading consultant to several brokers and writes on various tech and financial topics. You can reach him at contact@asifimtiaz.com

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Asif Imtiaz

Asif worked as a prop trader for almost a decade, and later he managed trading operations for one of the largest foreign exchange strategy developers in Europe. Currently, he works as a trading consultant to several brokers and writes on various tech and financial topics. You can reach him at contact@asifimtiaz.com

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