GBP/AUD Persist to Break Resistance Near 1.8050 Amid Forecast of Diminishing Public Sector Borrowing

GBPAUD – Technical Analysis for Binary Options

United Kingdom – Public Sector Net Borrowing

On Tuesday, at GMT 9:30 a.m., the UK’s Office for National Statistics will release the public sector borrowing figure. It measures the difference in value of the spending and income of the public corporations as well as the central government of the UK and other local governments during the last month.

A positive public sector borrowing figure would indicate a budget deficit and a negative figure would indicate a budget surplus. Hence, HighLow traders consider a negative figure to be a good news for the British Pound.

Last month, the UK public sector borrowing figure came out at 6.3 billion, and the forecast for this month is set at a much lower figure, at 1.1 billion.

Australia – Unemployment Rate

On Thursday, at GMT 12:30 a.m., the Australian Bureau of Statistics will release the national unemployment rate. It measures the percentage of total work force which remained unemployed over the past month.

Binary options investors consider the unemployment rate to be one of the most important fundamental indicators of the Australian economy. It is because one of the main goals of the Reserve Bank of Australia is to keep the unemployment as low as possible. Although this is a lagging indicator, analyzing this data can help Forex traders predict future interest rates and inflation situation in the country.

Last month, the unemployment rate in Australia came out at 5.1%. This month, analysts are expecting it to remain unchanged at 5.1%.

GBP/AUD Forecast

GBP/AUD Analysis for binary options

Since breaking above the downtrend line on December 14, 2018, the GBP/AUD remained bullish. Over the one month or so, it has climbed up by around 750 pips. After reaching near the resistance around 1.8050, it managed break above it. However, the bullish momentum did not sustain, and the pair soon fell below the pivot zone. Currently, the GBP/AUD is testing the 1.8050 once again.

The Australian unemployment rate is likely to remain unchanged at 5.1% over the last month. On the other hand, the UK’s public sector net borrowing will likely drop to 1.1 billion. 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 1.8050, it would likely attract additional bullish momentum in the market.

Hence, binary options brokers should look out for trading opportunities above this major resistance level around 1.8050.

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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