Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Preliminary French CPI for December is predicted to rise by 0.2% monthly and 3.8% annualized. Forex traders can compare this to the French CPI for November, which decreased by 0.2% monthly and increased by 3.5% annualized. The French Harmonized CPI for December is predicted to accelerate by 0.3% monthly and 4.1% annualized. Forex traders can compare this to the French Harmonized CPI for November, which contracted by 0.2% monthly and expanded by 3.9% annualized.
The Spanish HCOB Services PMI for December is predicted at 51.2. Forex traders can compare this to the Spanish HCOB Services PMI for November, reported at 51.0.
The Italian HCOB Services PMI for December is predicted at 49.8. Forex traders can compare this to the Italian HCOB Services PMI for November, reported at 49.5.
The Final French HCOB Services PMI for December is predicted at 44.3, and the Final French HCOB Composite PMI at 43.7. Forex traders can compare this to the French HCOB Services PMI for November, reported at 45.4, and the French HCOB Composite PMI at 44.6.
The Final German HCOB Services PMI for December is predicted at 48.4, and the Final German HCOB/BME Composite PMI at 46.7. Forex traders can compare this to the German HCOB Services PMI for November, reported at 49.6, and the German HCOB/BME Composite PMI at 47.8.
The Final Eurozone HCOB Services PMI for December is predicted at 48.1, and the Final Eurozone HCOB Composite PMI at 47.0. Forex traders can compare this to the Eurozone HCOB Services PMI for November, reported at 48.7, and the Eurozone HCOB Composite PMI at 47.6.
UK Mortgage Approvals for November are predicted at 48.50K. Forex traders can compare this to UK Mortgage Approvals for October, reported at 47.36K.
UK Net Consumer Credit for November is predicted at £1.400B. Forex traders can compare this to UK Net Consumer Credit for October, reported at £1.289B.
The Final UK S&P Globa/CIPS Services PMI for December is predicted at 52.7, and the Final UK S&P Globa/CIPS Composite PMI at 51.7. Forex traders can compare this to the UK S&P Globa/CIPS Services PMI for November, reported at 50.9, and the UK S&P Globa/CIPS Composite PMI at 50.7.
The forecast for the EUR/GBP is cautiously bullish, with the ascending Senkou Span A of the Ichimoku Kinko Hyo Cloud closing the gap to the Senkou Span B. The Tenkan-sen started to drift lower, with the Kijun-sen flat, suggesting more volatility ahead. Traders should monitor the CCI following its double breakdown from extreme overbought territory and below zero. A reversal by this technical indicator into positive territory could extend the previous rally. Can bulls regain control over the EUR/GBP and push this currency pair into its horizontal resistance 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 breakout above the 0.8585 to 0.8625 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.8615
- Take Profit Zone: 0.8695 – 0.8720
- Stop Loss Level: 0.8555
Should price action for the EUR/GBP breakdown below 0.8585, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level:Short Position @ 0.8555
- Take Profit Zone: 0.8435 – 0.8495
- Stop Loss Level: 0.8590
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