Source: PaxForex Premium Analytics Portal, Fundamental Insight
UK Retail Sales for May rose by 0.3% monthly and contracted by 2.1% annualized. Economists predicted a decrease of 0.2% and 2.6%. Forex traders can compare this to UK Retail Sales for April, which rose by 0.5% monthly and dropped by 3.4% annualized. UK Core Retail Sales for May expanded by 0.1% monthly and declined by 1.7% annualized. Economists predicted a decrease of 0.3% and 2.1%. Forex traders can compare this to UK Core Retail Sales for April, which expanded by 0.7% monthly and declined by 3.0% annualized.
The Final Spanish GDP for the first quarter is predicted to increase by 0.5% quarterly and 3.8% annualized. Forex traders can compare this to the Spanish GDP for the fourth quarter, which rose by 0.4% quarterly and 2.9% annualized.
The Preliminary French S&P Global Manufacturing PMI for June is predicted at 45.4, the Preliminary French S&P Global Services PMI at 52.0, and the Preliminary French S&P Global Composite PMI at 51.0. Forex traders can compare this to the French S&P Global Manufacturing PMI for May, reported at 45.7, the French S&P Global Services PMI at 52.5, and the French S&P Global Composite PMI at 51.2.
The Preliminary German S&P Global Manufacturing PMI for June is predicted at 43.5, the Preliminary German S&P Global Services PMI at 56.2, and the Preliminary German S&P Global Composite PMI at 53.5. Forex traders can compare this to the German S&P Global Manufacturing PMI for May, reported at 43.2, the German S&P Global Services PMI at 57.2, and the German S&P Global Composite PMI at 53.9.
The Preliminary Eurozone S&P Global Manufacturing PMI for June is predicted at 44.8, the Preliminary Eurozone S&P Global Services PMI at 54.5, and the Preliminary Eurozone S&P Global Composite PMI at 52.5. Forex traders can compare this to the Eurozone S&P Global Manufacturing PMI for May, reported at 44.8, the Eurozone S&P Global Services PMI at 55.1, and the Eurozone S&P Global Composite PMI at 52.8.
The UK S&P Global/CIPS Manufacturing PMI for May is predicted at 46.8, the UK S&P Global/CIPS Services PMI at 56.8, and the UK S&P Global/CIPS Composite PMI at 53.6. Forex traders can compare this to the UK S&P Global/CIPS Manufacturing PMI for April, reported at 47.1, the UK S&P Global/CIPS Services PMI at 55.2, and the UK S&P Global/CIPS Composite PMI at 54.0.
The forecast for the EUR/GBP remains bearish as price action trades between its flat Kijun-sen and Tenkan-sen. The descending Ichimoku Kinko Hyo Cloud provides ongoing downside pressures, expected to guide this currency pair lower over the next few weeks. Traders should also monitor the CCI in overbought territory. It may briefly spike into extreme conditions before receding. A breakdown below zero could accelerate the sell-off. Can bears maintain control over the EUR/GBP and force price action into its 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 0.8575 to 0.8615 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.8590
- Take Profit Zone: 0.8340 – 0.8400
- Stop Loss Level: 0.8660
Should price action for the EUR/GBP breakout above 0.8615, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.8660
- Take Profit Zone: 0.8705 – 0.8765
- Stop Loss Level: 0.8615
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