The Pound Sterling has been bound by an ascending channel against the Australian Dollar since September 2017. The GBP/AUD pair bounced off the lower boundary of a dominant pattern on September 12 and has since surged against the Aussie.
The exchange rate has moved closer to the border of a medium-scale triangle and could be set for a breakout. The pair tested the monthly R1 at 1.7861 and moved back south. From a theoretical aspect, this might be a correctional movement. However, this correctional movement could find support set by the weekly pivot point at 1.7783.
The overall market sentiment is bullish and it is likely to continue for the following week until it reaches the upper boundary of the junior channel where the weekly R1 is located.
