GBP/AUD clocks 10-day high

Offered tone around AUD gathered pace in Asia, pushing the GBP/AUD cross to a ten-day high of 1.7219 levels.

Unwind of GBP shorts

The cross jumped from a low of 1.6918 to 1.7165 on Thursday largely on the back of unwinding of GBP shorts after the UK data released this week showed no signs of post Brexit gloom and doom.

Gains were extended in Asia as the losses in the AUD/USD exceeded the drop in Cable. UK public sector net borrowing figure may come and go without much fanfare unless it is a big miss on expectations or a stellar figure.

GBP/AUD Technical Levels

Breach of immediate resistance at 1.7362 levels (Aug 1 low) would open doors for a rally to 1.75 handle. On the lower side, break below 1.7108 (daily low) would expose 1.70 levels.