DAILY ASIA SESSIONS WATCHLIST GBPAUD

For us, given that Sterling has been an under performer against Aussie for a while now, and with covid case trending lower in the U.K., the short-term favors Sterling for now. And if we see both faster inflation in the U.K. and disappointing retail sales data from Australia, we think the odds are good that the upside momentum may lead to a break above the 1.8000 – 1.8050 level, and a fresh swing long opportunity

But if we see the opposite scenario play out where Australian retail sales data improved substantially and the U.K. inflation situation weakens, that bearish divergence signal may draw in both technical and fundamental traders that could push the pair back to the 1.7900 handle, based on the daily ATR of around 120 pips.