Source: PaxForex Premium Analytics Portal, Fundamental Insight

The Final Spanish GDP for the fourth quarter is predicted to increase by 0.2% quarterly and 2.7% annualized. Forex traders can compare this to the Spanish GDP for the third quarter, which rose by 0.1% quarterly and 4.4% annualized.

The Preliminary French S&P Global Manufacturing PMI for February is predicted at 48.0, the Preliminary French S&P Global Services PMI at 52.5, and the Preliminary French S&P Global Composite PMI at 51.8. Forex traders can compare this to the French S&P Global Manufacturing PMI for January, reported at 47.4, the French S&P Global Services PMI at 53.1, and the French S&P Global Composite PMI at 51.7.

The Preliminary German S&P Global Manufacturing PMI for February is predicted at 47.0, the Preliminary German S&P Global Services PMI at 51.0, and the Preliminary German S&P Global Composite PMI at 51.0. Forex traders can compare this to the German S&P Global Manufacturing PMI for January, reported at 46.3, the German S&P Global Services PMI at 50.9, and the German S&P Global Composite PMI at 50.7.

The Preliminary Eurozone S&P Global Manufacturing PMI for February is predicted at 49.0, the Preliminary Eurozone S&P Global Services PMI at 52.5, and the Preliminary Eurozone S&P Global Composite PMI at 51.9. Forex traders can compare this to the Eurozone S&P Global Manufacturing PMI for January, reported at 48.5, the Eurozone S&P Global Services PMI at 52.7, and the Eurozone S&P Global Composite PMI at 52.0.

UK Retail Sales for February are predicted to rise by 0.2% monthly and drop by 4.7% annualized. Forex traders can compare this to UK Retail Sales for January, which increased by 0.5% monthly and contracted by 5.1% annualized. UK Core Retail Sales for February are predicted to rise by 0.1% monthly and contract by 4.7% annualized. Forex traders can compare this to UK Core Retail Sales for January, which increased by 0.4% monthly and dropped by 5.3% annualized.

The UK S&P Global/CIPS Manufacturing PMI for March is predicted at 50.0, the UK S&P Global/CIPS Services PMI at 53.0, and the UK S&P Global/CIPS Composite PMI at 52.7. Forex traders can compare this to the UK S&P Global/CIPS Manufacturing PMI for November, reported at 49.3, the UK S&P Global/CIPS Services PMI at 53.5, and the UK S&P Global/CIPS Composite PMI at 53.1.

The forecast for the EUR/GBP remains bearish after the Ichimoku Kinko Hyo Cloud initiated a bearish crossover. Volatility could increase after the Kijun-sen and the Tenkan-sen flatlined. Traders should also monitor the CCI after it managed a breakout from extreme oversold territory before the zero barrier rejected it. This technical indicator has plenty of downside potential and could lead price action lower. Can bears take advantage of favorable conditions and pressure the EUR/GBP 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 0.8790 to 0.8835 zone, PaxForex recommends the following trade set-up:

• Timeframe: D1           
• Recommendation: Short Position
• Entry Level: Short Position @ 0.8815
• Take Profit Zone: 0.8640 – 0.8675
• Stop Loss Level: 0.8870

Should price action for the EUR/GBP breakout above 0.8835, PaxForex recommends the following trade set-up:

• Timeframe: D1           
• Recommendation: Long Position
• Entry Level: Long Position @ 0.8870
• Take Profit Zone: 0.8925 – 0.8980
• Stop Loss Level: 0.8835

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