Analysis of the Australian pound pair today.

Fundamental analysis

The Australian pound pair fell on Friday for the third day in a row, as it retreated today after the negative growth data released from the UK this morning, which came in below expectations.

On the other side of Australia, some positive Australian data came yesterday, represented by jobs and unemployment data, which gave the Australian currency some strength against most currencies.

Technical analysis

The Australian pound pair is trading near the levels of the uptrend on the daily frame, and on the four-hour frame the pair is trying to form a head and shoulders pattern, as if the right shoulder is formed and the neckline shown is broken, we expect further retracements of the pair during next week's trading.

We then target the levels of 1.9650 and then 1.9550.

This scenario fails if the trend breaks through and the neck is back up.