GBP/USD and AUD/USD both climbing
GBP/USD continues to recover after it created a higher low last week, while AUD/USD’s bounce has been extended again.
GBP/USD pushes higher as rebound recovers
The sharp drop of the second half of December seems to have run its course for GBP/USD. The price rallied back above the 50-day simple moving average (SMA) of $1.2979 and then continued to bounce.
This looks like a higher low for the uptrend, and so we look for this move to continue to $1.347 and the December high, and then ideally to continue and create a new higher high. This bullish view remains in place unless the price moves back below $1.29.
AUD/USD rally continues
Over the past week the AUD/USD price has surged through previous highs and has not looked back.
This continues to reinforce the idea from our FX 2020 outlook, that suggests a longer-term move higher could be underway here. Further gains could develop here now that the price has cleared the 50-week moving average at $0.6945.
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