The British Pound is tipped to extend its ongoing advance against the Australian Dollar by a noted foreign exchange technical analyst.

Richard Perry with Hantec Markets says on a near-term basis there is a bull flag present on the chart above the recent close at 1.7110 which implies upside towards 1.7430.

“As sterling has sharply appreciated over the past couple of weeks, the Aussie has come under renewed downside pressure and this is having a significant upside drive on Sterling/Aussie,” says Perry.

The market has rallied sharply to the extent that there was a move to a seven month high yesterday on an intraday push above the January high of 1.7205.

We reported this week that strategists at Barclays continue to profit on their trade that seeks to take advantage of upside in the GBP/AUD exchange rate.

Analysts at the British bank believe a target at 1.75 is valid.

“The positive GBP reaction to last week’s announcement of an 8 June snap election is appropriate. In most scenarios the election should improve the government’s negotiating position and reduce political uncertainty, creating risks of a faster GBP reversion to fair value than our forecasts imply,” says analyst Hamish Pepper at Barclays.

What target is Perry eyeing though?

“Momentum indicators are strongly positive with the RSI staying around the 70 mark, Stochastics remaining bullishly configured and the MACD lines rising strongly. Yesterday’s strong bull candle maintains the near term upside momentum with the hourly chart also strongly configured,” says Perry.

The analyst says buyers will be looking for a close above 1.7205 which would then mean that the next resistance is not until the September high at 1.7800 which is the resistance of the ten month trading range.

“There is now support in the range 1.7110/1.7200 to buy into weakness, with the bulls remaining in control whilst above support at 1.6877,” says Perry.