Source: PaxForex Premium Analytics Portal, Fundamental Insight
The UK Jobless Claims Change for March was reported at 10.1K. Forex traders can compare this to the UK Jobless Claims Change for February, reported at 86.8K. The UK Employment Change for the tri-monthly period ending in February was reported at -73K, and the ILO Unemployment Rate was reported at 4.9%. Economists predicted a reading of -150K and 5.1%. Forex traders can compare this to the UK Employment Change for January, reported at -147K, and to the ILO Unemployment Rate, reported at 5.0%. Average Weekly Earnings for the tri-monthly period ending in February increased by 4.5% annualized, and Average Weekly Earnings Excluding Bonuses increased by 4.4% annualized. Economists predicted an increase of 4.8% and 4.2%. Forex traders can compare this to Average Weekly Earnings for January, which increased by 4.8%, and to Average Weekly Earnings Excluding Bonuses, which increased by 4.2%.
The German PPI for March increased by 0.9% monthly and 3.7% annualized. Economists predicted an increase of 0.6% and 3.3%. Forex traders can compare this to the German PPI for February, which increased by 0.7% monthly and 1.9% annualized.
The forecast for the EUR/GBP remains bearish, with the descending Ichimoku Kinko Hyo Cloud providing downside pressure on this currency pair. Post-Brexit UK has significantly brighter prospects than the EU, adding to long-term bullishness for the British Pound. The Tenkan-sen crossed above the flat Kijun-sen, suggesting short-term volatility may increase before this currency pair can resume its path lower. Will bears prevail and pressures the EUR/GBP into its next 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 0.8590 to 0.8655 zone, the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.8610
- Take Profit Zone: 0.8280 – 0.8350
- Stop Loss Level: 0.8700
Should price action for the EUR/GBP breakout above 0.8655, the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.8700
- Take Profit Zone: 0.8840 – 0.8920
- Stop Loss Level: 0.8655
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