Source: PaxForex Premium Analytics Portal, Fundamental Insight

The Preliminary Australian Manufacturing PMI for August was reported at 53.9. Forex traders can compare this to the Australian CBA Manufacturing PMI for July, reported at 54.0. The Preliminary Australian CBA Services PMI for August was reported at 48.1. Forex traders can compare this to the Australian CBA Services PMI for July, reported at 58.2. The Preliminary Australian CBA Composite PMI for August was reported at 48.8. Forex traders can compare this to the Australian CBA Composite PMI for July, reported at 57.8. Australian Retail Sales for August increased by 3.3% monthly. Economists predicted a decrease of 2.7% monthly. Forex traders can compare this to Australian Retail Sales for July, which increased by 2.7% monthly.

UK GfK Consumer Confidence for August was reported at -27. Economists predicted a figure of -25. Forex traders can compare this to UK GfK Consumer Confidence for July, reported at -27. UK Public Sector Net Borrowing for July was reported at £25.940B and UK Public Sector Net Cash Requirements at £16.491B. Forex traders can compare this to UK Public Sector Net Borrowing for June, reported at £28.780B, and to UK Public Sector Net Cash Requirements, reported at £44.124B.

UK Retail Sales for July increased by 3.6% monthly and by 1.4% annualized. Economists predicted an increase of 2.0% and 0.1%. Forex traders can compare this to UK Retail Sales for June, which increased by 13.1% monthly, and which decreased by 1.6% annualized. UK Core Retail Sales for July increased by 2.0% monthly and by 3.1% annualized. Economists predicted an increase of 0.2% and 1.5%. Forex traders can compare this to UK Core Retail Sales for June, which increased by 13.4% monthly and by 1.7% annualized.

The forecast for the GBP/AUD maintains a strong bullish bias, enforced after disappointing Australian economic data and a positive surprise out of the UK. Price action is moving across its Ichimoku Kinko Hyo Cloud, supported by the ascending Tenkan-sen. A breakout above the cloud appears likely, which can take this currency pair into its next horizontal resistance area. Will bulls have the strength to advance? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.

Should price action for the GBP/AUD remain inside the or breakout above the 1.8350 to 1.8450 zone the following trade set-up is recommended:

• Timeframe: D1
• Recommendation: Long Position
• Entry Level: Long Position @ 1.8400
• Take Profit Zone: 1.8975 – 1.9125
• Stop Loss Level: 1.8270

Should price action for the GBP/AUD breakdown below 1.8350 the following trade set-up is recommended:

• Timeframe: D1
• Recommendation: Short Position
• Entry Level: Short Position @ 1.8270
• Take Profit Zone: 1.8025 – 1.8075
• Stop Loss Level: 1.8350

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