The pound sterling Australian dollar (GBP AUD) pair is a cross rate (currency pair without the American dollar USD ) where the pound is the base currency and the Australian dollar is the quote currency. The pair remains a popular currency among both forex traders and investors. The GBP/AUD ratio shows the price of the pound sterling in Australian dollars. So, the current price for June 2021 is 1.80 for the GBPAUD pair, which means that 1 GBP costs 1.80 AUD.
What does the GBP AUD exchange rate depend on?
There is a widespread belief that the pound/Australian dollar (GBP AUD) exchange rate depends on economic news or on the statements of officials, but in practice the situation is “exactly the opposite”: the pound/Australian dollar pair depends only on changes in the pound and Australian dollar indices. For example,
- if the trends in the AUD and GBP indices go in opposite directions, then either a bullish or bearish trend will be visible on the chart of the GBP AUD currency pair;
- if the trends in the indices are directed in one direction, a flat will be visible on the chart of the GBP/AUD currency pair.
Here are two charts of the Australian dollar and pound sterling index. Trends in opposite directions are highlighted in green.
An example of the latest trend for the GBPAUD pair : the pound and Australian dollar indices are forming opposite trends, which ultimately resulted in a powerful movement for the GBP AUD pair (shown by arrows).
Economics of Currency
The Australian currency is a commodity asset, since its positions are closely interconnected with economic trends and the development of the state. At the same time, the pound is the national currency of Great Britain, one of the strongest economies in the European region and even in the world.
The asset acts as a kind of indicator of the speed of dynamics of the two currencies.
When making a forecast for price movement, it is important to take into account changes in the position of the US dollar, which affects both monetary units. And each of them may react differently to the US currency.
“Pound Sterling-Australian Dollar” is characterized by moderate popularity among traders, but attracts the attention of its fans both in the Forex market and in the binary options sector.
You can register on the Finmax website to learn how to trade this asset on favorable terms and record a positive financial result from the first transactions.
The asset is also considered profitable for carry trade operations, with the main factor influencing the price being the difference in interest rates between countries and the general market trend.
The British pound and the Aussie dollar are considered stable and very attractive currencies for trading. In particular, they can be used by beginners to hone their skills in making deals and understand the principle of profit generation.
However, the UK currency can sometimes be capricious and pitfalls emerge, for example, it always overreacts to important news.
Which indicators should I choose to predict the GBP AUD exchange rate?
In addition to indices, the rate of the GBP AUD currency pair is influenced by the levels of accumulation of market maker orders. Look in the picture how the price moves from one MF level to another. According to the Masterforex-V TS, there are strong and minor levels.
In addition, for a more complete analysis, you can FREE install the original indicators presented in the Masterforex-V Academy: AO_ZOTIK (improved AO by Bill Williams) and WPR_VSMARK (developed instead of RSI).
The figure shows only four technical analysis indicators out of more than 30 developed within the Masterforex-V trading system, which traders use during trading and during professional training in Forex and the Exchange at the MasterForex-V Academy .
The problem of approach and EURUSD GBPUSD EURGBP correlation strategy
So what's the problem with this seemingly winning strategy? But the problem is that not a single coefficient will align the graph if it tends to move in a trend. The price will move in such a way that the input amounts will no longer move from zero up or down and back to zero. Look at this ideal graph and imagine what a graph would look like if it had lost its anchor to zero. And so it will happen !
Trade with a broker Regarding correlation. I can say that working this way seems somewhat pointless to me. It assumes that you need to enter one instrument at a time, and if the charts of two instruments are similar, then enter the second one as well. I would say that this is a simple increase in the lot. If you want to increase the lot, then open on the first instrument with a double lot and that’s it. Why philosophize?
GBP AUD Trends
- LONG-term trends (determined on timeframes from Daily3) for GBP AUD last up to several years. The beginning and end of such trends can be determined by trend reversal patterns of the same wave level according to Elliott theory with the know-how of MasterForex-V (for example, “cup and handle”, “head and shoulders” or “spike”, etc. ). Before such reversals, divergence on the charts is possible.
- MEDIUM-term trends (determined on timeframes from H8) and last for several weeks. Here you can clearly see the working out of the levels of accumulations of orders of market makers with their real or false penetration (or rebound from these levels) according to Masterforex-V. Such actions are confirmed, as a rule, through one of the trend continuation figures - a symmetrical triangle, an ascending and descending triangle, etc.
Trading and earnings on the pound - Australian dollar
We do not know of a single successful trader who could work “only” with the GBPAUD pair . Why? It’s very simple: up to 4/5 of the time, flat-like movements of its exchange rate are formed for currency pairs in general and for the GBP/AUD pair in particular, and only 1/5 of the movement brings the majority of the profit to the trader.
This is why Masterforex-V traders prefer to track various instruments or markets (forex, futures, stock, commodity, cryptocurrency market), and not just one specific one, since for a successful trader it is important to have a trend, which can be for the GBP pair in one month AUD, and in the other - by stock (exchange) indices and so on.
It is the choice of working in DIFFERENT markets that gives up to 300%-700% profit over several years, which no ETF or ETP funds, stocks, bonds or mutual funds will provide.
Information about the British pound sterling.
The pound sterling is the oldest currency in the world and was first introduced in 1158 by King Henry II. The coins of that time were made of silver and were called Sceats. However, the pound sterling originated in 1560–1561, when Queen Elizabeth I introduced a new currency to combat the inflation the country was experiencing. The pound was a stable and strong currency, even surviving the test of civil war.
By the end of the First World War, Britain's economic prospects had changed as fluctuations and instability took over. The gold standard was adopted and approved in 1925. But the depression of 1930 was marked by another financial crisis with currency devaluation and market reversal. After many efforts were made to strengthen the currency, decimalization took place in 1971. As a result, the pound was divided into 100 pence, whereas in the past one pound was equal to 240 pence. Pound notes have been a form of legal tender for over 300 years and are issued in denominations of £5, £10, £20 and £50. Responsibility for minting currency lies with the Royal Mint; however, the Bank of England is the country's central bank and prints the banknotes that are used in England.
The UK economy is the fifth largest in the world in terms of GDP. The UK is also the world's ninth largest exporter of goods, as well as the sixth largest importer, and one of the most globalized economies in the world.
The UK economy is dominated by the services sector, with the financial services industry being particularly important. The country's aerospace industry ranks second, while the pharmaceutical industry lags behind the automobile industry. The UK economy is also boosted by gas and oil production from the North Sea.
Recommended trading and investment brokers
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