Which is the best way to trade the Pound Australian Dollar (GBP/AUD)? This article explains how to take a technical investment approach in the latest chart market. The method of trading this pair is strongly influenced by economic conditions, policy interest rates, commodity prices, etc., so it is important to understand the factors specific to the currency pair and adopt an appropriate trading strategy. This article focuses on effective methods for trading the Pound Australian Dollar, factors to consider, and trading strategies.
Characteristics of the Pound-Australian Dollar
The Pound-Australian Dollar (GBP/AUD) is a currency pair of the British pound (GBP) and the Australian dollar (AUD), known for its particularly high volatility and unique price fluctuation characteristics. The method of trading this pair is strongly influenced by economic conditions, policy interest rates, commodity prices, etc., so it is important to understand the factors specific to the currency pair and adopt an appropriate trading strategy.
High volatility
GBP/AUD is more volatile than other major currency pairs, and large price movements often occur in a short period of time. For this reason, it can be traded with a wide range of strategies, from short-term trading to long-term investment. Looking at the charts, there is high volatility in the market, so it is important to decide on rules and matters before trading. For short-term transactions, you will need to be creative, such as buying and selling and settling around the time the calendar changes.
Differences in policy interest rates
The UK and Australia often have very different economic situations and policy interest rates, which greatly affect exchange rates. Australia is a resource-rich country, so it is strongly influenced by commodity prices (especially iron ore and coal), while the UK has a service-based economy. Investors need to use the functions to predict trends. Think about it while looking at the rates on the page. Customers need to draw lines in the data and perform technical analysis on their own.
Influence of geopolitical risks and economic indicators
The pound is easily affected by Brexit and the UK’s economic policies, while the Australian dollar is easily affected by the Chinese economy and commodity markets. This means that when trading, it is necessary to pay attention to the economic indicators and geopolitical news of both countries. Understand the mechanism and place orders with limit orders. On average, pips move more than stocks, so decide on a policy and calculate the expected price movement before moving so as not to lose your principal. The rise and fall are more extreme than the USD, and the highs and lows are quickly updated.
How to trade the pound/Australian dollar
There are several methods for trading the pound-Australian dollar, but here are some possible methods. When trading foreign exchange margin, you should consider all situations, such as buying on dips and cutting losses. You need to make predictions based on fundamentals and technicals. In either case, you need to predict where the trend line will be and invest while reading it.
Swing trading
Swing trading is a method of holding a position for several days to several weeks and aiming for trend fluctuations. Since the pound/Australian dollar is highly volatile, it is possible to capture major trends with swing trading. In swing trading, the following points are focused on.
Technical analysis: Use moving averages (MA), Bollinger bands, MACD, RSI, etc. to confirm the trend. It is particularly effective to make entry and exit decisions at the timing of golden crosses and dead crosses.
Fundamental analysis: Check economic indicators, policy interest rate announcements, central bank statements, etc. to determine the formation of long-term trends. In particular, the UK inflation rate, Australia’s employment statistics, and commodity price trends are important.
Breakout method
The breakout method is a method of entering when a specific price range is broken through and aiming for a large price movement afterwards. The pound/Australian dollar is a currency pair that is suitable for targeting breakouts because its price often rises and falls sharply.
Support/Resistance Analysis: Look for support lines where the price often bounces back, or resistance lines where the price bounces back and falls, and enter when the line is broken.
Bollinger Bands: When the Bollinger Bands are converging, it is considered that a breakout opportunity is near, as it is a sign that the price is about to start moving. Pay attention when the band width is narrowing.
Carry Trade
The pound-Australian dollar is a currency pair suitable for carry trade strategies. Carry trade is a method of selling a currency with a low interest rate and buying a currency with a high interest rate, and making a profit from the difference.
Utilizing the interest rate differential: The Australian dollar tends to have a relatively high interest rate, so it is possible to carry trade by taking advantage of the interest rate differential with the British pound. Especially when holding a position for the long term, make use of the swap points obtained from the interest rate differential.
Risk Management: Since carry trade involves holding a position for a long period of time, there is a risk of exchange rate fluctuations. Therefore, appropriate risk management and stop loss settings are essential.
News Trade
The pound-Australian dollar is easily influenced by economic news and events, so news trade is also an effective method.
Pay attention to the release of economic indicators: In particular, indicators such as the UK’s GDP and inflation rate, Australia’s employment statistics, and the growth rate of the Chinese economy have a significant impact on the GBP/AUD. Don’t miss trading opportunities before and after these indicators are released.
Geopolitical risks: Australia is a resource-rich country and is strongly influenced by the Chinese economy. Trends in the Chinese economy and fluctuations in commodity prices also affect this currency pair, so it is important to always check the related news.
The Importance of Risk Management
Regardless of the method you use, risk management is key to successful trading. Especially with volatile currency pairs such as the GBP/AUD, pay attention to the following points to minimize losses.
Setting stop losses: Be sure to set stop losses in case of large price movements. Without them, you may incur unexpected losses.
Managing position size: Taking excessively large positions increases risk. It is important to use appropriate leverage and maintain a reasonable position size relative to your assets.
Introducing overseas FX with high contract power
Now, let’s introduce some overseas FX companies with high contract power. We have selected some very popular and reliable brokers and compiled them into a list, so we hope you will find it useful.
XMTrading
XM actually has three companies. When you search online, you will find three hits: XM.com, XMtrading.com, and XMGlobal. Among them, XMTrading offers a comfortable environment for Japanese users, and is highly recommended as it has KIWAMI and Zero accounts.
| Brand name | XM | XMTrading | XMGlobal |
| Operating company | Trading Point Holdings LTD | Tradexfin Limited | XM Global Limited |
| URL | www.xm.com | xmtrading.com | xmglobal.com |
| location | Cyprus | Seychelles | Belize |
| license | FCA、ASIC、CySEC | FSA | IFSC、DFSA、ASIC、CySEC |
| Service Countries | Europe | Asia | others |
FXGT
FXGT is a relatively new FX company established in 2019. The operating company is 360 Degrees Markets Ltd., with a registered address in the Republic of Seychelles. Originally, they also offered services called Global GT and Crypto GT, but they were merged into FXGT in 2023. Of course, they also have a financial license, so you can rest assured that they have a high reputation among people. In the past, they have added many bonuses, and they are a good deal as they are a top-ranked broker.
| Operating company | 360 Degrees Markets Ltd. |
| Registered address | セーシェル共和国 Room 12, First Floor, Kingsgate House, Victoria, Mahe, Seychelles |
| Financial License | FSA: Seychelles Financial Services Authority |
| Established | 2019 |
Axiory
Axiory is an overseas FX broker established in 2015 by Axiory Global Ltd. Axiory is headquartered in Belize and incorporated as a “tax haven”. It has obtained the IFSC license from the Financial Services Agency of the Belize International Financial Services Commission, making it a very reliable and safe FX broker.
| Operating company | Axiory Global Ltd. |
| Established | 2015 |
| location | No. 1 Corner of Hutson Street andMarine Parade Belize City, Belize |
| Financial License | IFSC: Belize International Financial Services Commission |
Bigboss
BigBoss is an FX company established in 2013. It is based in Saint Vincent and the Grenadines and is operated by Prime Point LLC. It has a good reputation among traders and has not experienced any major problems or withdrawal refusals, so it can be said to be a very reliable company.
| Company | Prime Point LLC |
| Found | 2013 |
| Address | 1/F, First St Vincent Bank Ltd Building James Street Kingstown St. Vincent and the Grenadines |
| License | SVG FSA |
easyMarkets
easyMarkets was founded in 2001, making it by far the oldest company among overseas FX brokers. It is operated by EF Worldwide Limited, and is an FX broker based in the Marshall Islands. The Marshall Islands are a tax haven, so they tend to be the base of FX brokers.
| Operation Company | EF Worldwide Limited |
| Address | Ajeltake Road, Trust Company Complex, MH 96960, Ajeltake Island, Majuro, Marshall Islands. |
| License | CySEC,ASIC,FSA,FSC |
| Found | 2001 |
| URL | Click here |
Exness
Exness is a world-famous FX brand founded in 2008 with global expansion. It is a multinational corporate group that has obtained official financial licenses in multiple countries, including European and overseas subsidiaries and affiliates. As of April 2022, it boasts a trading volume of over 2105 trillion dollars.
| Operating company | Exness Limited |
| Registration number | 8423606-1 |
| Country of registration | Japan-Seychelles Relations |
| Company Address | 9A CT House, 2nd floor, Providence, Mahe, Seychelles |
| Established | 2008 |
| Number of Employees | 1054 |
| URL | Home Page |
| telephone number | (+248) 4346767 |
| email address | support@exness.com |
| Financial License | Seychelles Financial Services Authority |
FBS
FBS is an FX broker based in Vanuatu. Founded in 2009, it is a FX broker with a long history of operation. It has successfully expanded globally and has branches all over the world. It also has a financial license. It is well-known among overseas FX brokers, and deposits and withdrawals are safe.
| Operation Company | Mitsui Markets Ltd. |
| Established | 2009 |
| Address | 133 Santina Parade, Elluk, Port Vila, Efale, Vanuatu |
| License | VFSC、IFSC、CySEC |
HFM
The company profile of HF Markets is as follows. The company name has always been Hot Forex, but it changed to HFM in 2022. HFM is a very popular company, especially in Europe, and has won more than 60 awards, so it is very popular and well-known.
| Company Name | HF Markets(SV)Ltd |
| CEO | – |
| Found | 2010 |
| Address | Suite 305, Griffith Corporate Centre, P.O. Box 1510, Beachmont Kingstown, St. Vincent and the Grenadines. |
| Capital Stock | ? |
| Number of employees | 250 |
| support@hfm.com | |
| Licence | IBC No: 22747 IBC 2015 St. Vincent and the Grenadines |
| URL | Home Page |
iForex
iForex is a very long-established FX company, and this alone makes it trustworthy. The operating company is Formula Investment House Ltd, which was established in 1996, so it has a history of 30 years. It is based in the British Virgin Islands and has a financial license registered with the Financial Services Commission of the British Virgin Islands (BVI FSC).
| 運営会社 | Formula Investment House Ltd |
| 設立 | 1996 |
| 所在地 | 1, Wickham’s Cay, Road Town,Tortola BVI VG1110 |
| 金融ライセンス | BVI FSC：英領バージン諸島金融サービス委員会 |
IronFX
IronFX is a globally expanding FX broker established in 2010. As service information is provided worldwide, there are many registered users in Europe, Asia, the Middle East, Africa, and Latin America, and awareness is increasing. IronFX is recognized as a fast-growing FX broker, and in 2012 it won the Best Trading Platform 2012 award.
| Broker | IronFX |
| Established | 2010 |
| Headquarter | Cypros |
| Service Area | Europe Asia Africa Oceania North America South America |
| License | CySEC FCA ASIC |
| Address | 2, Iapetou Str., Agios Athanasios, 4101 Limassol, Cyprus |
| Tel | +44(0) 203 282 7777 |
| Owner | Markos A. Kashiouris Peter G. Economides |
| Company Name | Notesco Limited |
| URL | Home |
LandPrime
Land-FX is an FX broker established in 2013 by the operating company Land Prime Ltd. It has been in operation for over 10 years, so it can be said to be a fairly established broker. Its greatest appeal is its narrow spreads and high contract power, and it has traders all over the world.
| Operation Company | Land Prime Ltd. |
| Established | 2013 |
| Address | ? |
| License | SVG FSA |
| URL | Home |
MILTON MARKETS
MILTON MARKETS is an FX company established in the Republic of Vanuatu in 2015. It is regulated by the Vanuatu Financial Services Commission and has a financial license from the VFSC, so it is a very reliable company.
| 運営会社 | Milton Markets Ltd. |
| 設立 | 2015 |
| 所在地 | バヌアツ共和国 2nd Floor, Transpacific Haus Lini Highway Port Vila, Vanuatu |
| 金融ライセンス | VFSC：バヌアツ金融サービス委員会 |
GeneTrade
GeneTrade is an FX service company established in 2018 by the operating company Genius Trading LTD. The company is headquartered in Belize and holds a financial license from the Belize International Financial Services Commission (IFSC), so it is operated under regulations.
| Operation Comapany | Genius Trading LTD |
| Found | 2018 |
| Address | 5 Cork Street, Belize City, Belize |
| License | IFSC |
TITANFX
TITANFX is an FX company established in the Republic of Vanuatu in 2014. It offers a wide range of services, including free VPS, free EA, and copy trading, and is highly recommended. The maximum leverage is 500x, so you can deposit and withdraw funds with peace of mind.
| Operation Company | Titan FX Limited |
| Establishment | 2014 |
| Address | Pot 564/100, Rue De Paris, Pot 5641, Centre Ville, Port Vila, Vanuatu |
| Financial license | VFSC |
TradersTrust
It is now TTCM TRADERS CAPITAL LIMITED, a group of companies that operate TradersTrust, and was founded in 2009. It is headquartered in Cyprus and is regulated by the Cyprus Securities and Exchange Commission (CySEC), which is difficult to obtain.
| Operation Compamy | TTCM Traders Trust Capital Markets Limited (ltd) |
| Found | 2009 |
| Address | 3 Thalia Street, Office Number 310-318, 3rd Floor, 3011, Limassol, Cyprus |
| License | CySEC |
Axi
We will explain the basic information of Axi. Axi is an FX broker established in Australia in 2007. Of course, it holds a license from the Financial Services Agency and is one of the famous brokers with many users. All account types offer up to 1,000 times leverage.
| Broker | Axi |
| Established | 2007 |
| Max Leverage | 1000x |
| License | SVG ASIC FSA |
| Trading Tool | MT4 |
FXPRIMUS
The basic information of FXPRIMUS is as follows. Naturally, it holds a financial license and is operated under strict regulations. It has bases in Vanuatu and Cyprus and has obtained licenses from the financial authorities of each country.
| Broker | Primus Markets INTL LTD(Cyprus) Primus Global LTD(Vanuatu) |
| Location | Cyprus Vanuatu |
| License | CySEC VFSC |
| Established | 2009 |
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