A quick look at a GBP/AUD chart over the past 6 months will make it clear that the 1.60 level has acted as a key psychological level for some time now.
Since November of last year the GBP/AUD pair have bounced off of 1.60 around 4 times, and even in October of last year when the Pound came under huge pressure the rate only dipped into the 1.59’s for a short while before recovering back to levels above the key 1.60 mark.
Personally I think that a number of factors could reverse the direction of GBP/AUD, and I think 1.60 could remain a support level for the Pound with the pair likely to approach 1.70 once the Brexit is underway.
At present I think the markets are awaiting the certainty the invocation of Article 50 will give financial markets, which will in turn boost Sterling’s value. I’m also expecting to see the strongly performing Aussie Dollar lose some value should the US Fed Reserve Bank begin hiking interest rates as is planned in the US, as a higher yielding Dollar will likely limit demand for the high yielding Aussie Dollar.
Aussie Dollar sellers are in the fortunate position of being able to convert their currency into Pounds at around 3 year highs. Those planning on selling AUD for GBP are able to improve on their outcome even further as our currency brokerage offers exchange rates that improve on those offered by the high street banks, therefore our clients receive more Pounds for the Aussie Dollars through us.
If you are planning to make a currency exchange involving the Pound and another foreign currency, it’s well worth your time getting in contact with me on [email protected] in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible.