GBP/AUD Possible Continued Growth

Looking at the chart we see that the Pound is progressing well against the Australian Dollar. It is currently in a zone that is very sensitive for this currency pair, which is a fibo level of 23.6%. This was once an obstacle to the pound’s progress upwards. from October 15 we have consolidation from 1.82200 to 1.83400. If it manages to break through that zone, the next target above is around the fibo level 38.2 at 1.87500. However, if it does not break through, we return down to the beginning to the lower trend line around 1.77000.
The GBP was under back pressure after Moody’s subsequent downgrade of the UK’s credit rating by one notch to Aa3 due to a huge economic hit from the coronavirus crisis, Brexit and the lack of clear budget plans by Prime Minister Boris Johnson’s government.
Moody’s said that Britain’s growth was “significantly weaker than expected and will probably be the same in the future.”
The fall to the older version was another blow for Johnson. He faces attack from opposition parties and MPs in his Conservative Party. Particularly, for how he’s dealt with the pandemic. Covid-19 killed more people in Britain than anywhere else in Europe. In fact, Corona cases continue to grow in Britain.
Reserve Bank of Australia’s Governor Phillip Lowe’s recent hint about an extension of the bond purchase programs to longer (10Y) maturities has the market in anticipation of the move happening as soon as the 3rd November policy meeting. Corona cases in Australia are falling, which could give strength to the Australian dollar.