The GBP/AUD currency pair bounced off a support level formed by the 50– period simple moving average at 1.8564 on July 20. As a result, the British Pound has surged by 175 pips or 0.95% against the Australian Dollar since last week’s trading sessions.
The exchange rate is currently trading near the upper line of an ascending channel pattern and could be set for a breakout.
If the breakout occurs, a surge towards the weekly R3 at 1.8870 could be expected during the following trading sessions.
However, if the channel pattern holds, bearish traders could drive the currency exchange rate lower during the coming days.
