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The U.K. is printing its labor market numbers today.

Can GBP/AUD provide a legit trading opportunity?

Before I show y’all a potential setup, take a look at the top market themes in the last couple of hours:

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

Upcoming Potential Catalysts on the Economic Calendar:

  • U.K.’s labor market numbers at 7:00 am GMT
  • Switzerland’s PPI at 7:30 am GMT
  • Canada’s housing starts at 1:15 pm GMT
  • Canada’s manufacturing sales at 1:30 pm GMT
  • U.S. NY manufacturing index at 1:30 pm GMT

What to Watch: GBP/AUD

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

Optimism over extended Brexit negotiations has boosted the pound during the U.S. session.

Meanwhile, China’s upbeat data dump earlier today was shrugged off in favor of Aussie bears pricing in Australia’s escalating trade tensions with China.

But that’s all in the past. The U.K. is set to print its labor market numbers and, the word around is that we could see higher jobless claimants even as average earnings tick higher.

If the economic release brings more bulls to the pound’s yard, then we could see GBP/AUD bust through the 1.7750 minor psychological handle and head for the 1.7900 inflection point.

If traders get over the pro-pound and anti-Aussie themes, however, then pound bears can complete a double top-ish pattern around a 50% Fib retracement and 100 SMA on the 1-hour time frame.