Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Spanish Markit Manufacturing PMI for December is predicted at 52.8. Forex traders can compare this to the Spanish Markit Manufacturing PMI for November, reported at 49.8. The Italian Markit/ADACI Manufacturing PMI for December is predicted at 53.7. Forex traders can compare this to the Italian Markit/ADACI Manufacturing PMI for November, reported at 51.5.
The Final French Markit Manufacturing PMI for December is predicted at 51.1. Forex traders can compare this to the French Markit Manufacturing PMI for November, reported at 49.6. The Final German Markit/BME Manufacturing PMI for December is predicted at 58.6. Forex traders can compare this to the German Markit/BME Manufacturing PMI for November, reported at 57.8. The Final Eurozone Markit Manufacturing PMI for December is predicted at 55.5. Forex traders can compare this to the Eurozone Markit Manufacturing PMI for November, reported at 53.8.
The final UK Markit/CIPS Manufacturing PMI for December is predicted at 57.3. Forex traders can compare this to the UK Markit/CIPS Manufacturing PMI for November, reported at 55.6. UK Mortgage Approvals for November are predicted at 82.50K. Forex traders can compare this to UK Mortgage Approvals for October, which were reported at 97.53K. UK Net Consumer Credit for November is predicted at -£1.500B and Net Mortgage Lending is predicted at £4.350B. Forex traders can compare this to UK Net Consumer Credit for October, reported at -£0.590B, and to Net Mortgage Lending, reported at £4.290B.
The forecast for the EUR/GBP remains bearish, and the downtrend is expected to accelerate. With Brexit in the rearview mirror, the UK is on course to regain lost economic ground while the EU faces intensifying issues. Following the breakdown in this currency pair below its Ichimoku Kinko Hyo Cloud, bearish momentum intensified. The Tenkan-sen is sloping downwards while the Kijun-sen is drifting higher. A crossover can spark the next wave of sell orders. While the CCI entered extreme oversold territory, it has more room to correct. Can bears force the EUR/GB P 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 0.8925 to 0.8985 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.8955
- Take Profit Zone: 0.8670 – 0.8740
- Stop Loss Level: 0.9000
Should price action for the EUR/GBP breakout above 0.8985 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.9000
- Take Profit Zone: 0.9080 – 0.9105
- Stop Loss Level: 0.8985
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