Source: PaxForex Premium Analytics Portal, Fundamental Insight
UK Retail Sales for September are predicted to increase 0.5% monthly and decrease 0.4% annualized. Forex traders can compare this to UK Retail Sales for August, which decreased 0.9% monthly and increased 1.9% annualized. UK Core Retail Sales for September are predicted to increase 0.2% monthly and decrease 1.7% annualized. Forex traders can compare this to UK Core Retail Sales for August, which decreased 1.2% monthly and 0.9% annualized.
The Preliminary UK Markit Manufacturing PMI for October is predicted at 55.8, the Preliminary UK Markit Services PMI at 54.5, and the Preliminary UK Markit Composite PMI at 54.0. Forex traders can compare this to the UK Markit Manufacturing PMI for September, reported at 57.1, the UK Markit Services PMI reported at 55.4, and the UK Markit Composite PMI reported at 54.9.
The Preliminary Eurozone Markit Manufacturing PMI for October is predicted at 57.0, the Preliminary Eurozone Markit Services PMI at 55.5, and the Preliminary Eurozone Markit Composite PMI at 55.2. Forex traders can compare this to the Eurozone Markit Manufacturing PMI for September, reported at 58.6, the Eurozone Markit Services PMI reported at 56.4, and the Eurozone Markit Composite PMI reported at 56.2.
The forecast for the EUR/GBP remains bearish, but price action may take a brief pause before accelerating to the downside. After the Tenkan-sen and the Kijun-sen turned sideways, selling pressure eased, and volatility is likely to increase. The Ichimoku Kinko Hyo Cloud maintains its bearishness, and a crossover by the descending Senkou Span A below the flat Senkou Span B can ignite the next sell-off. Traders should wait for the CCI to exit extreme oversold territory followed by a retreat below -100 before entering their sell orders. Can bears keep downside pressure intact and force 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 0.8385 to 0.8465 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.8425
- Take Profit Zone: 0.8275 – 0.8310
- Stop Loss Level: 0.8490
Should price action for the EUR/GBP breakout above 0.8465, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.8490
- Take Profit Zone: 0.8535 – 0.8565
- Stop Loss Level: 0.8465
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