Source: PaxForex Premium Analytics Portal, Fundamental Insight

The Preliminary French Markit Manufacturing PMI for June was reported at 52.1. Economists predicted a reading of 46.0. Forex traders can compare this to the French Markit Manufacturing PMI for May, reported at 40.6. The Preliminary French Markit Services PMI for June was reported at 50.3. Economists predicted a reading of 44.2. Forex traders can compare this to the French Markit Services PMI for May, reported at 31.1. The Preliminary French Markit Composite PMI for June was reported at 51.3. Economists predicted a reading of 46.3. Forex traders can compare this to the French Markit Composite PMI for May, reported at 32.1.

The Preliminary German Markit Manufacturing PMI for June was reported at 44.6. Economists predicted a reading of 41.5. Forex traders can compare this to the German Markit Manufacturing PMI for May, reported at 36.6. The Preliminary German Markit Services PMI for June was reported at 45.8. Economists predicted a reading of 42.0. Forex traders can compare this to the German Markit Services PMI for May, reported at 32.6. The Preliminary German Markit Composite PMI for June was reported at 45.8. Economists predicted a reading of 44.2. Forex traders can compare this to the German Markit Composite PMI for May, reported at 32.3.

The Preliminary Eurozone Markit Manufacturing PMI for June was reported at 46.9. Economists predicted a reading of 44.5. Forex traders can compare this to the Eurozone Markit Manufacturing PMI for May, reported at 39.4. The Preliminary Eurozone Markit Services PMI for June was reported at 47.3. Economists predicted a reading of 41.0. Forex traders can compare this to the Eurozone Markit Services PMI for May, reported at 30.5. The Preliminary Eurozone Markit Composite PMI for June was reported at 47.5. Economists predicted a reading of 42.4. Forex traders can compare this to the Eurozone Markit Composite PMI for May, reported at 31.9.

The Preliminary UK Markit Manufacturing PMI for June was reported at 50.1. Economists predicted a reading of 45.0. Forex traders can compare this to the UK Markit Manufacturing PMI for May, reported at 40.7. The Preliminary UK Markit Services PMI for June was reported at 47.0. Economists predicted a reading of 40.0. Forex traders can compare this to the UK Markit Services PMI for May, reported at 29.0. The Preliminary UK Markit Composite PMI for June was reported at 47.6. Economists predicted a reading of 41.0. Forex traders can compare this to the UK Markit Composite PMI for May, reported at 30.0.

The EUR/GBP forecast turned bearish after this currency pair jumped to the top range of its horizontal resistance area, following a surprise surge in preliminary Eurozone PMI data. German dragged down the data, providing a reason to remain cautious. UK data also clocked in well above expectations. Price action is now grazing the upper level of the Ichimoku Kinko Hyo Cloud. The rise in new Covid-19 infections should be monitored closely, with Germany joining the list of worrisome virus resurgence. Will bears attempt a correction this week? 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 0.9015 to 0.9100 zone the following trade set-up is recommended:

• Timeframe: D1
• Recommendation: Short Position
• Entry Level: Short Position @ 0.9060
• Take Profit Zone: 0.8670 – 0.8740
• Stop Loss Level: 0.9150

Should price action for the EUR/GBP breakout above 0.9100 the following trade set-up is recommended:

• Timeframe: D1
• Recommendation: Long Position
• Entry Level: Long Position @ 0.9150
• Take Profit Zone: 0.9335 – 0.9415
• Stop Loss Level: 0.9060

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