Source: PaxForex Premium Analytics Portal, Fundamental Insight
The final UK Markit/CIPS Composite PMI for October is predicted at 54.1. Forex traders can compare this to the UK Markit/CIPS Manufacturing PMI for September, reported at 54.1. UK CBI Industrial Industrial Trends Orders for November are predicted at 18. Forex traders can compare this to CBI Industrial Trends Orders for October, reported at 9.
Eurozone Consumer Confidence for November is predicted at -5.5. Forex traders can compare this to Eurozone Consumer Confidence for October, reported at -4.8.
The forecast for the EUR/GBP is slowly turning bullish after this currency pair has reached a massive horizontal support area. Bearish momentum is deflating, and price action shows signs of a rebound attempt, driven but its Ichimoku Kinko Hyo Cloud. It turned bullish after its Senkou Span started t ascend, with the Senkou Span B flat. Short-term volatility may rise as the Tenkan-sen, and the Kijun-sen, continue to drift lower, but the CCI started to ascend inside extreme oversold territory. Traders should wait for a breakout above -100 before adding their buy positions. Can bulls regain control over the EUR/GBP and force a reversal until price action can reach 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 0.8335 to 0.8400 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.8385
- Take Profit Zone: 0.8530 – 0.8560
- Stop Loss Level: 0.8295
Should price action for the EUR/GBP breakdown below 0.8335, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.8295
- Take Profit Zone: 0.8110 – 0.8175
- Stop Loss Level: 0.8335
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