We have entered a Sell on GBPAUD.
This is a clear play on the relative Covid-19 situation in each country. The UK is suffering a clear second wave of the virus with much of the country in local lockdowns with many industries expecting both redundancies & bankrupcies to come over the next few months.
Meanwhile Australia is now coming out of their lockdown, one that has been a huge success if suppressing the virus, as of today they have only reported 9 new cases across the country, compared to the UK which has posted 16,000+ cases!
To make matters worse, both countries are at opposite ends of the seasons, with Australia heading into the summer which by many accounts should limit the spread naturally to some degree while the UK heads into the seasonal flu season through their winter...
On top of this negative outlook for the UK on a health and economic standpoint, the UK is also at a standoff with the EU over Brexit negotiations with "No Deal" looking increasingly likely.
From a technical view its clear that price is approaching resistance so on all aspects the best trade here is to sell the GBP against the AUD.
This is a clear play on the relative Covid-19 situation in each country. The UK is suffering a clear second wave of the virus with much of the country in local lockdowns with many industries expecting both redundancies & bankrupcies to come over the next few months.
Meanwhile Australia is now coming out of their lockdown, one that has been a huge success if suppressing the virus, as of today they have only reported 9 new cases across the country, compared to the UK which has posted 16,000+ cases!
To make matters worse, both countries are at opposite ends of the seasons, with Australia heading into the summer which by many accounts should limit the spread naturally to some degree while the UK heads into the seasonal flu season through their winter...
On top of this negative outlook for the UK on a health and economic standpoint, the UK is also at a standoff with the EU over Brexit negotiations with "No Deal" looking increasingly likely.
From a technical view its clear that price is approaching resistance so on all aspects the best trade here is to sell the GBP against the AUD.
Initial signs showing that the resistance level is being respected. Lets hope for some more bearish follow through today.