Source: PaxForex Premium Analytics Portal, Fundamental Insight
The German GfK Consumer Confidence Survey for August came in at -18.4. Economists predicted a figure of -21.5. Forex traders can compare this to the German GfK Consumer Confidence Survey for July, reported at -21.6.
The Preliminary French HCOB Manufacturing PMI for July is predicted at 45.8, the Preliminary French HCOB Services PMI at 49.7, and the Preliminary French HCOB Composite PMI at 48.9. Forex traders can compare this to the French HCOB Manufacturing PMI for June, reported at 45.4, the French HCOB Services PMI at 49.6, and the French HCOB Composite PMI at 48.8.
The Preliminary German HCOB Manufacturing PMI for July is predicted at 44.1, the Preliminary German HCOB Services PMI at 53.2, and the Preliminary German HCOB Composite PMI at 50.7. Forex traders can compare this to the German HCOB Manufacturing PMI for June, reported at 43.5, the German HCOB Services PMI at 53.1, and the German HCOB Composite PMI at 50.4.
The Preliminary Eurozone HCOB Manufacturing PMI for July is predicted at 46.0, the Preliminary Eurozone HCOB Services PMI at 52.9, and the Preliminary Eurozone HCOB Composite PMI at 51.1. Forex traders can compare this to the Eurozone HCOB Manufacturing PMI for June, reported at 45.8, the Eurozone HCOB Services PMI at 52.8, and the Eurozone HCOB Composite PMI at 50.9.
The UK S&P Global/CIPS Manufacturing PMI for July is predicted at 51.1, the UK S&P Global/CIPS Services PMI at 52.5, and the UK S&P Global/CIPS Composite PMI at 52.6. Forex traders can compare this to the UK S&P Global/CIPS Manufacturing PMI for June, reported at 50.9, the UK S&P Global/CIPS Services PMI at 52.1, and the UK S&P Global/CIPS Composite PMI at 52.3.
The forecast for the EUR/GBP turned cautiously bullish after this currency pair stabilized inside its horizontal support area. Short-term volatility could rise with price action trading between its flat Kijun-sen and Tenkan-sen. The Senkou Span A and the Senkou Span B of the Ichimoku Kinko Hyo Cloud are moving lower, adding downside pressure and volatility potential. Traders should also monitor the CCI after forming a positive divergence in extreme oversold territory, followed by a breakout. This technical indicator has plenty of upside potential, and a move above zero could accelerate the rally. Can bulls control the EUR/GBP and drive price action 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 0.8395 to 0.8425 zone, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.8415
- Take Profit Zone: 0.8500 – 0.8525
- Stop Loss Level: 0.8380
Should price action for the EUR/GBP break down below 0.8395, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.8380
- Take Profit Zone: 0.8300 – 0.8340
- Stop Loss Level: 0.8395
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