The GBPAUD saw an increase in volatile trade as it is testing its resistance level. Two false breakouts were reversed and this currency pair appears to be on the verge of a third and final breakout attempt. I do not think it will succeed and the final reversal is most likely to lead to a bigger sell-off.

I have positioned myself for a sell-off as I expected forex traders to take profits anywhere between 2.0000 and 2.0200. I think we will see the GBPAUD trade closer to 1.9500 by the end of the summer as commodity prices will rebound slightly and the Bank of England remains on the sidelines.