The Bank of England is expected to hold interest rates at current levels and keep stimulus intact. With Brexit less than 100 days away, it is unlikely that the British central bank will move. The British Pound has sold off heavily across the board as PM Boris Johnson is preparing the country for a no deal Brexit. Did forex traders price this even in already and is the risk now to the upside? The GBPAUD started to stabilize and recover, will price action extend further to the upside? Today’s fundamental analysis will explore the options in both directions.

Here are the key factors to keep in mind today for British Pound trades:

• UK Markit Manufacturing PMI: The UK Markit Manufacturing PMI for July is predicted at 47.7. Forex traders can compare this to the UK Markit Manufacturing PMI for June which was reported at 48.0.
• Bank of England Interest Rate Decision, Asset Purchase Target and Corporate Bond Target: The Bank of England is predicted to keep interest rates at 0.75%, the Asset Purchase Target £435B and the Corporate Bond Target at £10B. The vote is expected to be unanimous with all 9 MPC members voting in favor of no change.

Australian PMI data came in mixed, but the ongoing contraction in the Chinese manufacturing sector is pressuring the Australian Dollar to the downside. This added bullish pressures to the GBPAUD which is now nearing a breakout above its support area. Can price action advance on the back of a short-covering rally or are bears in the drivers seat? Subscribe to the PaxForex Daily Fundamental Analysis and join our fast growing community of profitable forex traders!

Here are the key factors to keep in mind today for Australian Dollar trades:

• Australian AiG Performance of Manufacturing Index: The Australian AiG Performance of Manufacturing Index for July was reported at 51.3. Forex traders can compare this to the Australian AiG Performance of Manufacturing Index for June which was reported at 49.4.
• Australian CBA Manufacturing PMI: The Final Australian CBA Manufacturing PMI for July was reported at 51.6. Economists predicted a figure of 51.4. Forex traders can compare this to the previous Australian CBA Manufacturing PMI for July which was reported at 52.0.
• Australian CoreLogic House Prices: Australian CoreLogic House Prices for July increased by 0.1% monthly. Forex traders can compare this to Australian CoreLogic House Prices for June which decreased by 0.1% monthly.
• Australian Import Price Index & Australian Export Price Index: The Australian Import Price Index for the second-quarter increased by 0.9% quarterly and the Australian Export Price Index increased by 3.8% quarterly. Economists predicted an increase of 1.5% and of 2.8%. Forex traders can compare this to the Australian Import Price Index for the first-quarter which decreased by 0.5% quarterly and to the Australian Export Price Index which increased by 4.5% quarterly.
• Chinese Caixin Manufacturing PMI: The Chinese Caixin Manufacturing PMI for July was reported at 49.9. Economists predicted a figure of 49.6. Forex traders can compare this to the Chinese Caixin Manufacturing PMI for June which was reported at 49.4.
• Australian RBA Commodity Index: The Australian RBA Commodity Index for July increased by 16.1% annualized. Forex traders can compare this to the Australian RBA Commodity Index for June which increased by 13.9% annualized.

Should price action for the GBPAUD remain inside the or breakout above the 1.7680 to 1.7800 zone the following trade set-up is recommended:

• Timeframe: D1
• Recommendation: Long Position
• Entry Level: Long Position @ 1.7710
• Take Profit Zone: 1.8040 – 1.8100
• Stop Loss Level: 1.7625

Should price action for the GBPAUD breakdown below 1.7680 the following trade set-up is recommended:

• Timeframe: D1
• Recommendation: Short Position
• Entry Level: Short Position @ 1.7625
• Take Profit Zone: 1.7390 – 1.7425
• Stop Loss Level: 1.7680

Open your PaxForex Trading Account now and add this currency pair to your forex portfolio. Forex trading can have a positive impact on your life, but trading with the right forex broker is as important as executing the proper trading strategy; join our fast growing community of profitable forex traders today!