This pair denotes how many Australian Dollars are needed to purchase one British Pound. Often, the Australian Dollar is referred to as a risk currency due to its relatively higher interest rates and correlation to global equity markets. The British Pound depreciated relative to the Australian Dollar after 2008 and only began making a significant rebound in 2013 in light of declining growth in China and a slowdown in the global commodity supercycle, which has hurt Australia's largest sector, mining.
Is the Australian Dollar starting to rekindle its correlation to general risk trends or perhaps this climb is self-motivated? With tentative bullish breaks being put in, conviction should be a technical trader’s primary focus.