Source: PaxForex Premium Analytics Portal, Fundamental Insight
UK Construction Output Seasonally Adjusted for April decreased by 1.4% monthly and 3.3% annualized. Economists predicted a rise of 0.1% and a drop of 1.8%. Forex traders can compare this to UK Construction Output Seasonally Adjusted for March, which decreased by 0.4% monthly and 2.2% annualized.
The UK GDP for April came in flat at 0.0% monthly, increased by 0.2% for the three-month-over-three-month period ending in April, and expanded by 0.6% annualized. Economists predicted a flat reading of 0.0%, a rise of 0.7%, and an increase of 0.6%. Forex traders can compare this to the UK GDP for March, which expanded by 0.4%, rose by 0.6% for the three-month-over-three-month period ending in March, and accelerated 0.7% annualized.
UK Industrial Production for April decreased by 0.9% monthly and 0.4% annualized. Economists predicted a contraction of 0.1% and an expansion of 0.3%. Forex traders can compare this to UK Industrial Production for March, which rose by 0.2% monthly and 0.5% annualized. UK Manufacturing Production for April dropped by 1.4% monthly and expanded by 0.4% annualized. Economists predicted a decrease of 0.2% and an increase of 1.6%. Forex traders can compare this to UK Manufacturing Production for March, which increased by 0.3% monthly and 2.3% annualized.
The UK Visible Trade Balance for April came in at -£19.610B, and the UK Trade Balance Non-EU at -£7.290B. Forex traders can compare this to the UK Visible Trade Balance for March, reported at -£13.970B, and the UK Trade Balance Non-EU at -£3.810B.
The Final German CPI for May rose 0.1% monthly and 2.4% annualized. Economists predicted an increase of 0.1% and 2.4%. Forex traders can compare this to the German CPI for April, which expanded 0.5% monthly and 2.2% annualized. The Final EU Harmonized German CPI for May increased by 0.2% monthly and 2.8% annualized. Economists predicted an expansion of 0.2% and 2.8%. Forex traders can compare this to the EU Harmonized German CPI for April, which rose 0.6% monthly and 2.4% annualized.
The forecast for the EUR/GBP turned bullish after this currency pair corrected into its horizontal support area. The flat Tenkan-sen and Kijun-sen confirm the absence of short-term downside pressure. Volatility may increase with the Senkou Span A of the Ichimoku Kinko Hyo Cloud moving lower and the Senkou Span B flat. Traders should also monitor the CCI in extreme oversold territory with an upward trajectory. A breakout above -100 could trigger a price action reversal. 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 0.8410 to 0.8440 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.8430
- Take Profit Zone: 0.8520 – 0.8550
- Stop Loss Level: 0.8385
Should price action for the EUR/GBP breakdown below 0.8410, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.8385
- Take Profit Zone: 0.8300 – 0.8340
- Stop Loss Level: 0.8410
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