Author, Mike Smith
A GBP to AUD forecast is an expectation of the exchange rate at a future date.
GBP to AUD forecasts are used to help decide whether it’s a good or bad time to exchange your money.
What is a good GBP to AUD rate?
The GBP to AUD rate tells you how many Australian Dollars can be bought for 1 British Pound.
Buyers of Australian Dollars (AUD) want a high rate.
Buyers of British Pounds (GBP) want a low rate.
It’s worth getting some historical context to help understand whether the current GBP to AUD rate is good or bad.
Over the past 10 years, the average GBP/AUD exchange rate has been $1.75.
That can be used as an easy benchmark for today.
At present, the GBP/AUD rate is sitting well above its long-term average of $1.75, making it a good time to buy Australian Dollars.
In August 2023 and July 2024, the GBP/AUD rate almost hit the $2 level. That’s a rarity these days.
Since Brexit, the GBP/AUD rate has only got above the $2 mark for a brief period in March/April 2020. With the rate back near $2, it’s a good indication that the rate is currently strong.
It’s also worth looking at the high and low points to get a feel for where the current rate sits within its trading range.
Over the last decade, the GBP/AUD rate reached a high of $2.2037 on 7th September 2015 and a low of $1.4428 on 12th March 2013 (source: Bank of England).
At present, the current GBP/AUD rate is closer to the historical highs than the lows.
This is another indicator of the favourable GBP to AUD rate today.
If you’re looking to send money from the UK to Australia our guidance will show you how!
Is the Pound going to rise against the Australian Dollar?
The GBP to AUD exchange rate has enjoyed a good run so far in 2024, although most of the time the rate has been choppy. Most of the gains have come in just two months – January and July. Overall, momentum remains positive.
The rise of the Pound to Aussie Dollar rate has caught many by surprise.
From a fundamental perspective, the Australian economy is growing faster than the UK, has higher inflation and is expected to maintian a tighter monetary policy for the rest of 2024. All these factors would point to a weaker GBP/AUD rate.
Let me explain a bit more. While the Bank of England is fretting about when to cut interest rates (summer or autumn), the Reserve Bank of Australia is still considering raising interest rates. That policy divergence would tend to strengthen the Aussie Dollar and weaken Pound Sterling – hence a lower GBP/AUD rate.
The OECD is forecasting Australia will grow 1.5% in 2024 whereas the UK economy is expected to grow 0.4%.
That’s quite a big difference.
Perhaps there is some cynicism regarding Bank of England cuts or that the UK’s new government could pursue inflationary (tax and spend) policies.
We view the current GBP/AUD rate as higher than you would expect given the fundamental outlook and is an attractive rate for buyers of Australian dollars either as a spot of forward trade.
As part of our service, we help you make the most of exchange rate trends and volatility.
We can even let you know when the GBP to AUD exchange rate moves in your favour!
Why not request a quote below?
GBP to AUD weekly forecasts (tips and tools)
Exchange rate forecasts depend on the window of time you are looking at.
For example, you can have positive short-term indicators alongside negative long-term indicators. The two can co-exist.
Forecasting always depends on your time frame.
Over shorter time frames – hours, days and weeks – there’s only a small number of things that can affect the GBP to AUD rate. It means you can narrow down your focus.
To keep track of upcoming news, take a look at the DailyFX economic calendar.
While there are plenty of other free economic calendars, I prefer this one because of its clear layout and that each piece of data is given a low, medium, or high level of importance.
I tend to disregard the low and medium-impact events and just concentrate on those with a high impact.
An economic calendar is not necessarily a great way of forecasting exchange rates, but it can be useful to help manage risk.
As currency brokers, we will look at the calendar and may hedge the risk before an important event.
If you are cautious by nature or cannot afford the GBP/AUD rate to move against you, it makes sense to convert your money ahead of a risk event.
Another popular way of looking at GBP/AUD trends and forecasts is to use technical analysis.
This involves using price patterns to identify trends and predict future exchange rate movements.
You can get a feel for recent price signals for the GBP to AUD exchange rate here.
Just select the timeframe you want (in orange), and it will give you a summary of whether it’s a Buy (GBP to rise) or a Sell (GBP to fall) using technical analysis.
I appreciate not everyone has the time or knowledge to analyse exchange rates.
You might find it easier to speak to someone that follows this day in, day out.
Ay Key Currency, part of our service is to help guide you on exchange rate trends and market opportunities.
GBP to AUD forecast 12 months+ (some practical advice)
Longer periods call for a different approach to forecasting.
Short-term news becomes irrelevant. Bug themes have time to play out.
My view is that there are so many factors that could affect longer-term GBP/AUD rates that you are best to focus on historical reference points to guide your timing.
From a practical point of view, I would look at historical rates using a GBP/AUD chart – 1 year and 5 years will give you a good enough perspective.
Look to identify areas of support (troughs) and resistance (peaks), as well as the current underlying trend.
You may also find it useful to speak to a foreign exchange broker who is watching rates continuously throughout the day.
It’s something we offer are part of our money transfer service.
Need some guidance on exchange rates?
Getting a good or bad exchange rate can make a massive financial difference to you.
In the past 5 years alone, the GBP/AUD rate as high as $2.05 and as low as $1.59.
That’s over a 20% swing from high to low.
It can be one of the more volatile currency pairs.
Even daily fluctuations in the GBP to AUD rate can be big, so it’s worth keeping a close eye on things.
At Key Currency, we are different from other money transfer companies.
We are not some online app or platform that makes you do all the work yourself.
We will discuss and agree on the right time to exchange your money, by understanding your requirements and taking advantage of any favourable movements.
Even if you are not ready to exchange your money, we can monitor the GBP/AUD rate for you and keep you up-to-date on market movements.
We have a 5-star rating on Trustpilot, based on over 2,000 customer reviews.
What’s more, Key Currency is regulated by the FCA as an Authorised Payment Institution (No. 753989). All money transfers are conducted through safeguarded client accounts.
If you would like to find out more about our service or our find out our latest rates, get a free quote below.