Source: PaxForex Premium Analytics Portal, Fundamental Insight
Australian NAB Business Conditions for May came in at 6, and Australian NAB Business Confidence was at -3. Forex traders can compare this to NAB Business Conditions for April, reported at 7, and Australian NAB Business Confidence at 2.
The UK Jobless Claims Change for May came in at 50.4K. Economists predicted a figure of 10.2K. Forex traders can compare this to the UK Jobless Claims Change for April, reported at 8.4K.
The UK Employment Change for the tri-monthly period ending in April came in at -140K, and the ILO Unemployment Rate at 4.4%. Economists predicted a reading of -100K and 4.3%. Forex traders can compare this to the UK Employment Change for March, reported at -177K, and the ILO Unemployment Rate, reported at 4.3%. Average Weekly Earnings for the tri-monthly period ending in April increased 5.9% annualized, and Average Weekly Earnings Excluding Bonuses rose 6.0% annualized. Economists predicted a rise of 5.7% and 6.0%. Forex traders can compare this to Average Weekly Earnings for March, which rose 5.9%, and to Average Weekly Earnings Excluding Bonuses, which increased 6.0%.
The forecast for the GBP/AUD turned cautiously bearish after this currency pair advanced into its horizontal resistance area. Short-term volatility may increase with the Kijun-sen and the Tenkan-sen flat. The descending Ichimoku Kinko Hyo Cloud adds to downside pressures, with the Senkou Span B shiting gradually lower and the Senkou Span zigzagging to the downside. Traders should also monitor the CCI in extreme overbought territory due to the formation of a negative divergence. A breakdown below 100 could trigger a sell-off, and this technical indicator has plenty of downside potential. Can bears regain control over the GBP/AUD and force price action 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 GBP/AUD remain inside the or breakdown below the 1.9260 to 1.9330 zone, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.9290
- Take Profit Zone: : 1.8960 – 1.9025
- Stop Loss Level:1.9350
Should price action for the GBP/AUD break out above 1.9330, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.9350
- Take Profit Zone: 1.9455 – 1.9480
- Stop Loss Level: 1.9330
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio.
