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The GBP/AUD cross is looking increasingly interesting as we count down to the Brexit vote on 23 June. Ever since President Obama came out strongly supporting Britain’s ‘Remain’ group, the betting odds for the camp winning the referendum have been steadily increasing. The pound has been strengthening alongside the move in the betting odds. Conversely, Australia’s shock miss in its first-quarter inflation numbers have greatly increased market pricing for further rate cuts by the Reserve Bank of Australia.
The GBP/AUD downtrend has been decisively broken as we can see from the blue line (Tenkan-sen) crossing above the red line (Kijun-sen). However, the price is currently in the Ichimoku Cloud and one would be looking for the price to break through $1.9575 to confirm the GBP/AUD has moved into an uptrend.