GBP/AUD breaks and hold above 1.7050 after disappointing Aussie jobs data

FXstreet.com (Barcelona) - The GBP/AUD foreign exchange cross rate is last quoted at 1.7066 off recent session lows at 1.7035 and slightly in the positive for the week thus far after reversing the negative tone seen until Tuesday/Wednesday when printing a double weekly low at 1.6875, after yesterday's ugly Aussie jobs data, surging since then till late London session fresh weekly high at 1.7140.

GBP/AUD reversing the bearish tone

According to the Capital3x team: “GBPAUD has broken through the squeeze at 1.6880. This is the volatility squeeze pattern. The Short trade at 1.72 worked perfectly as we took profits at 1.69 before longs at 1.69 for the volatility squeeze trade. The 50 DMA has held and has moved 200 pips to 1.71 with 25 DMA lurking above. Any retraces of 1.71 should be used to close the trade.”

GBP/AUD key technical levels

Immediate support to the downside for GBP/AUD lies at mentioned recent session lows 1.7035, followed by yesterday's highs at 1.7011, and Sept 04/05 lows at 1.6995/93. To the upside, closest resistance shows at recent session highs 1.7077, followed by Sept 03 lows at 1.7121, and mentioned London session weekly highs at 1.7140.

Flash: EUR/USD overvalued – BTMU

Lee Hardman, FX strategist at Bank of Tokyo-Mitsubishi UFJ made comments with reference to the position of the EUR/USD, suggesting that the euro is overvalued.
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