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The pound to Australian dollar exchange rate (GBP/AUD) can descend over the course of the coming week.

The pair has been trading between 2.01 and 2.02 over recent days, reflecting a little consolidative phase that should precede another leg lower.

The chart below was drawn two weeks ago and gave an overview of how we saw price action evolving:

It's proven remarkably apt and we are sticking with the annotations - the teal arrows - that were issued two Mondays ago. In short, a period of recovery should be shallow and ultimately give way to further weakness and a break below 2.0 .

📉 Note that the 21-day exponential moving average (EMA) at 2.0233 is capping proceedings and is pointed lower, guiding the GBP/AUD on its journey south .

This is consistent with a view

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