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Fears over a new Brexit deadline got traders selling the pound today. I still expect GBP/AUD to extend its uptrend, however. Here’s what I spotted on the 1-hour chart!

Currency Snapshot:

Major Forex Pairs Performance from MarketMilk
Major Forex Pairs Performance from MarketMilk

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What to Watch: GBP/AUD

GBP/AUD 1-hour Forex Chart
GBP/AUD 1-hour Forex Chart

GBP bulls got spooked earlier today when word got around that Boris Johnson and his friends are amending the Brexit bill to NOT allow further extensions. This means that, once the government has set a deadline, the U.K. must stick to it with or without a trade deal with the EU. Duhn duhn duhn.

AUD isn’t faring any better after RBA’s minutes hinted that central bank members could ease further as early as February.

For now, I’m optimistic that Boris’ recent landslide win would allow for speedier decision-making and maybe clearer Brexit conditions. This is why I’m looking to enter GBP/AUD’s uptrend as soon as I see momentum on the 1-hour chart.

It also helps that the trend is still overwhelmingly “bullish” across MarketMilk’s moving averages:

There are no signs of potential support from the recent downswing just yet, but I’m looking at the 200 SMA near the 50% Fib for potential entry and then use the 1.9540 zone as an initial target area.

I would also consider trading a channel support play if GBP/AUD drops back down to the 1.9175 previous area of interest.

Here’s GBP/AUD’s ATR if you need help placing your stops: