British Pound / Australian Dollar - GBP/AUD

Pivot points are a technical indicator that traders use to predict upcoming areas of technical significance, such as support and resistance. They're calculated by averaging the high, low and closing prices of a previous period. That could be a day, a week or a month.

If a market is trading above its previous pivot point (known as P), it is seen as a bullish signal. If it is below, it is bearish.

GBP/AUD is a forex pair that features the Great British pound and the Australian dollar, the world’s fourth and sixth most-traded currencies according to the Bank for International Settlements. As AUD is the quote currency in the pair, it tells you how many Australian dollars it takes to buy one pound at the current exchange rate.

At one point, GBP/AUD was a popular market among carry traders due to the low interest rates from the Bank of England (BoE) and comparatively high rates from the Reserve Bank of Australia (RBoA). However, in recent years the two rates have become much closer.