Source: PaxForex Premium Analytics Portal, Fundamental Insight
UK Nationwide House Prices for July decreased 0.5% monthly and increased 10.5% annualized. Economists predicted an increase of 0.6% and 12.1%. Forex traders can compare this to UK Nationwide House Prices for June, which increased 0.7% monthly and 13.4% annualized.
The German Import Price Index for June increased 1.6% monthly and 12.9% annualized. Economists predicted an increase of 1.5% and 12.6%. Forex traders can compare this to the German Import Price Index for May, which increased 1.7% monthly and 11.8% annualized.
The German GfK Consumer Confidence Survey for August was reported at -0.3. Economists predicted a figure of 1.0. Forex traders can compare this to the German GfK Consumer Confidence Survey for July, reported at -0.3. French Consumer Confidence for July was reported at 101. Economists predicted a figure of 102. Forex traders can compare this to French Consumer Confidence for June, reported at 103.
Italian Business Confidence for July is predicted at 115.4, and Italian Consumer Confidence is predicted at 115.5. Forex traders can compare this to Italian Business Confidence for June, reported at 114.8, and Italian Consumer Confidence, reported at 115.1.
The forecast for the EUR/GBP remains bearish, with the Ichimoku Kinko Hyo cloud maintaining the longer-term downtrend. Traders should prepare for short-term volatile price spikes higher, but the Tenkan-sen is on the verge of its next move lower. The Kijun-sen is set to follow, and while the CCI reached extreme oversold level, it possesses more downside potential. A false breakout may precede the next move lower. Will bears maintain their dominance over price action in the EUR/GBP and force it 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 0.8465 to 0.8535 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.8510
- Take Profit Zone: 0.8280 – 0.8350
- Stop Loss Level: 0.8560
Should price action for the EUR/GBP breakout above 0.8535, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.8560
- Take Profit Zone: 0.8630 – 0.8670
- Stop Loss Level: 0.8535
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