GBP/AUD 1H Chart: Triangle

We have recently looked at this currency pair and the pattern it was forming. Then the sentiment of SWFX traders was bearish—67% of positions were short. However, as seen from the latest GBP/AUD chart, the break-out from the triangle was to the upside. Subsequently the pair did erase these gains, but it is likely to confirm 1.6622/1.6565 as a support area that in turn should evoke short-squeezing beyond the local high of 1.6817. In the meantime, the sentiment grew even more bearish (72%), meaning that in the long term the Sterling is largely expected to be outperformed. Nevertheless, we view GBP/AUD as bullish in the short run.