(Apologies, I know I mentioned this yesterday but forgot to post it) This strategist team uses a combination of fundamental, technical and market indicators and they trade on a fairly long term time frame. Their arguments relate to the state of the gilt market, the relative strength/weakness of the Australian/UK economies, rising interest rates in Australia, and of less importance are the ongoing negative flows for the pound related to M&A activity.

They have added to their short GBP/AUD position at 1.6500 and have some trailing stops in place above 1.6675 and 1.6775. They are targeting a move to 1.30 and as the carry is heavily in their favour they are happy to run a long term position.