Source: PaxForex Premium Analytics Portal, Fundamental Insight
The UK Preliminary GDP for June is predicted to drop 1.2% monthly. Forex traders can compare this to the UK GDP for May, which rose 0.5% monthly. The UK Preliminary GDP for the second quarter is predicted to decrease 0.2% quarterly and increase by 2.8% annualized. Forex traders can compare this to the first quarter GDP, which rose 0.8% quarterly and 8.7% annualized.
UK Construction Output Seasonally Adjusted for June is predicted to decrease 1.5% monthly and to rise 3.3% annualized. Forex traders can compare this to UK Construction Output Seasonally Adjusted for May, which rose 1.5% monthly and 4.7% annualized.
UK Industrial Production for June is predicted to drop 1.3% monthly and increase 1.6% annualized. Forex traders can compare this to UK Industrial Production for May, which rose 0.9% monthly and 1.4% annualized. UK Manufacturing Production for June is predicted to plunge 1.8% monthly and rise 0.9% annualized. Forex traders can compare this to UK Manufacturing Production for May, which expanded 1.4% monthly and 2.3% annualized.
The UK Visible Trade Balance for June is predicted at -£22.300B. Forex traders can compare this to the UK Visible Trade Balance for May, reported at -£21.450B.
The French Unemployment Rate for the second quarter is predicted at 7.4%. Forex traders can compare this to the French Unemployment Rate for the first quarter, reported at 7.3%.
The Final French CPI for July is predicted to rise 0.3% monthly and 6.1% annualized. Forex traders can compare this to the French CPI for June, which expanded 0.7% monthly and 5.8% annualized. The Final French Harmonized CPI for July is predicted to increase 0.3% monthly and 6.8% annualized. Forex traders can compare this to the French Harmonized CPI for June, which rose 0.9% monthly and 6.5% annualized.
The Preliminary French CPI for July is predicted to drop 0.2% monthly and surge 10.8% annualized. Forex traders can compare this to the French CPI for June, which increased 1.9% monthly and 10.2% annualized. The French Harmonized CPI for July is predicted to decrease 0.5% monthly and increase 10.8% annualized. Forex traders can compare this to the French Harmonized CPI for June, which increased 1.9% monthly and 10.0% annualized.
The Italian Trade Balance for June is predicted at €0.350B. Forex traders can compare this to the Italian Trade Balance for May, reported at -€0.012B.
Eurozone Industrial Production for June is predicted to rise 0.2% monthly and 0.8% annualized. Forex traders can compare this to Eurozone Industrial Production for May, which increased 0.8% monthly and dropped 1.6% annualized.
The forecast for the EUR/GBP remains bearish after this currency pair advanced into its descending Ichimoku Kinko Hyo Cloud. The flat Kijun-sen and Tenkan-sen suggest an absence of short-term bullishness. Traders should monitor the CCI, which moved into extreme overbought territory. A lower high is likely to result in a breakdown and renewed sell-off in price action. Can bears overpower bulls and pressure the EUR/GBP into its horizontal support area? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.
Should price action for the EUR/GBP remain inside the or breakdown below the 0.8410 to 0.8490 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.8465
- Take Profit Zone: 0.8250 – 0.8295
- Stop Loss Level: 0.8560
Should price action for the EUR/GBP breakout above 0.8490, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.8560
- Take Profit Zone: 0.8610 – 0.88675
- Stop Loss Level: 0.8490
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