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With the U.K. printing its inflation numbers in a few hours, I’m looking at GBP/AUD’s uptrend for a potential retracement trade.

Currency Snapshot:

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

Fresh Market Headlines & Economic Data:

Upcoming Potential Catalysts on the Forex Calendar:

  • Euro Zone current account at 9:00 am GMT
  • U.K.’s CPI release at 9:30 am GMT
  • U.K.’s house price index at 9:30 am GMT
  • U.K.’s PPI input at 9:30 am GMT
  • Canada’s CPI numbers at 1:30 pm GMT

What to Watch: GBP/AUD

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

Asian session trading was a bit of a snoozer today but that doesn’t mean we won’t see legit volatility over the next couple of hours.

For one thing, the U.K. is printing its CPI reports today along with PPI input and output prices as well as its house price index. If you’ve seen the forecast earlier this week, then you’ll know that analysts mostly expect stronger numbers from the releases.

Meanwhile, comdolls like the Aussie have gotten a boost over lower new Coronavirus cases and reports of intervention from the Chinese government. Bulls might hesitate to go all in on the comdoll, though, as Australia’s jobs data is expected to print lower net job additions in the next Asian session trading.

Positive U.K. data could boost GBP/AUD from the 1.9410 area that’s around the 61.8% Fib retracement, trend line support, and previous resistance area.

The 1.9500 previous high is still a viable target given GBP/AUD’s daily volatility. You could also aim higher since MarketMilk is still pointing to a bullish trend on the daily time frame.

If today’s set of U.K. data leads to GBP weakness, then you can also wait for a break below the trend line and aim for previous areas of interest near 1.9350 or 1.9230 instead.