German Retail Sales for January increased by 0.9% monthly and by 1.8% annualized. Economists predicted an increase of 1.0% monthly and 1.5% annualized. Forex traders can compare this to German Retail Sales for December, which decreased by 2.0% monthly, and which increased by 1.7% annualized. The EUR/GBP lost bullish momentum and is now vulnerable to a sell-off, partially fueled by profit-taking. Today’s PMI data out of the Eurozone and the UK will likely provide the next catalyst.
The Spanish Markit Services PMI for February is predicted at 52.5. Forex traders can compare this to the Spanish Markit Services PMI for January, which was reported at 52.3. The Italian Markit Services PMI for February is predicted at 51.2. Forex traders can compare this to the Italian Markit Services PMI for January, which was reported at 51.4. The Italian Markit Composite PMI for February is predicted at 50.1. Forex traders can compare this to the Italian Markit Composite PMI for November, which was reported at 50.4.
The Final French Markit Services PMI for February is predicted at 52.6 Forex traders can compare this to the previous French Markit Services PMI for February, which was reported at 52.6. The Final French Markit Composite PMI for February is predicted at 51.9. Forex traders can compare this to the previous French Markit Composite PMI for February, which was reported at 51.9. The Final German Markit Services PMI for February is predicted at 53.3. Forex traders can compare this to the previous German Markit Services PMI for February, which was reported at 53.3. The Final German Markit/BME Composite PMI for February is predicted at 51.1. Forex traders can compare this to the previous German Markit/BME Composite PMI for February, which was reported at 51.1.
The Final Eurozone Markit Services PMI for February is predicted at 52.8. Forex traders can compare this to the previous Eurozone Markit Services PMI for February, which was reported at 52.8. The Final Eurozone Markit Composite PMI for February is predicted at 51.6. Forex traders can compare this to the previous Eurozone Markit Composite PMI for February, which was reported at 51.6. Eurozone Retail Sales for January are predicted to increase by 0.6% monthly and by 1.1% annualized. Forex traders can compare this to Eurozone Retail Sales for December, which decreased by 1.6% monthly, and which increased by 1.3% annualized.
The Final UK Markit/CIPS Services PMI for February is predicted at 53.2 and the Final UK Markit/CIPS Composite PMI is predicted at 53.3. Forex traders can compare this to the previous UK Markit/CIPS Services PMI for February, which was reported at 53.2 and to the previous UK Markit/CIPS Composite PMI, which was reported at 53.3. The EUR/GBP forecast carries a bearish bias, but will bears get the data to force a sell-off, or can bulls push higher?
Should price action for the EUR/GBP remain inside the or breakdown below the 0.8685 to 0.8745 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.8720
- Take Profit Zone: 0.8425 – 0.8465
- Stop Loss Level: 0.8785
Should price action for the EUR/GBP breakout above 0.8745 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.8785
- Take Profit Zone: 0.8875 – 0.8920
- Stop Loss Level: 0.8745
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