Talking Points:

- GBPUSD breakout leading GBPAUD after UK PMI data.

- AUDUSD fails at former resistance, looks weak below $0.9305.

- A dip in volatility today should be corrected tomorrow with Nonfarm Payrolls.

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The UK economy is already seeing signs of reacceleration in Q2, and the latest bout of data has put the British Pound at yearly highs versus the US Dollar. While the GBPUSD breakout is following the volatility breakout plan outlined earlier this week, we've yet to see GBPAUD begin its move higher.

The GBPAUD stall near the pivotal A$1.8220 comes at the descending TL from the January and March 2014 highs. The level also coincides with the topping head & shoulders pattern that was on display from December through March. While the USD-based majors are due for further volatility given the incredible saturation of 'medium' and 'high' rated events on the US economic calendar over the coming days.

Watch the video for a more detailed explanation and a look at the charts.

Read more: FOMC, NFPs Best Bets to Stir US Yields, EUR/USD from Low Vol Slumber

--- Written by Christopher Vecchio, Currency Analyst

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