GBPAUD – Technical Analysis for Australian Binary Options
Australia – Westpac Consumer Sentiment
On Tuesday, at GMT 11:30 a.m., the Westpac Banking Corporation in Australia will release its consumer sentiment index. It measures the changes in the level of a diffusion index by surveying 1,200 consumers in the country.
High Low Binary options investors consider the consumer sentiment to be one of leading indicator of future consumer spending. Because, it makes up a large portion of the Australian GDP. Hence, the large sample size of the Westpac consumer sentiment survey makes it one of the best leading indicators of the overall Australian economy.
Last month, the Westpac consumer sentiment index reading came out suggesting a 0.1% increase. It has sharply declined over the last few months. If the Westpac consumer sentiment does not grow or comes at a negative growth, it will have a negative impact on the Australian Dollar.
United Kingdom – Consumer Price Index
On Wednesday, at GMT 9:30 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 traders as one of the most important leading indicators of the overall economic health.
Last month, the UK’s CPI (y/y) increased by 2.3%. Analysts are expecting that for this month, it will grow at a slower pace, at 2.1% growth.
GBP/AUD Forecast
The GBP/AUD remained highly bearish since October 10, 2018. Over the last several months, the rate of GBG/AUD fell by around 1,500 pips. However, after reaching near the 1.7200 level, it found a strong support. Consequently, over the last six months, the GBP/AUD started a bullish retracement and broke above the downtrend line.
Nonetheless, since the start of January 2019, the GBP/AUD once again turned bearish and fell below the support around 1.7900. The 1.7900 level has now turned into a resistance.
The Australian Westpac Consumer Sentiment reading fell sharply over the last few months and it may go into negative territory. On the other hand, analysts are expecting the United Kingdom’s Consumer Price Index to grow at 2.1%. 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 1.7900, 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 1.7900.
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