Yesterday’s UK employment report for the three months ending November clocked in at the highest rate for 2019. Wages posted solid gains and are keeping inflationary pressures elevated, which is expected to keep the Bank of England in a holding pattern. Forex traders now await CBI data, predicted to further improve in January. The GBPAUD has pushed out of its horizontal support area, where is price action headed to next? Today’s fundamental analysis will take a look at price action in both directions.
Australian consumer confidence continued to contract in January, as the fire season battered the economy. In a bright spot, skilled vacancies have increased, and fore traders are now awaiting more commentary out of the RBA as well as the government. The GBPAUD is adding to its gains, but will bulls be able to keep the rally alive or are bears lingering around the next candlestick? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.
Here are the key factors to keep in mind today for British Pound trades:
- UK Public Sector Net Borrowing: UK Public Sector Net Borrowing for December is predicted at £4.6B and UK Public Sector Net Borrowing excluding Banking Groups at £5.3B. Forex traders can compare this to UK Public Sector Net Borrowing for November, which was reported at £4.9B and to UK Public Sector Net Borrowing excluding Banking Groups, which was reported at £5.6B.
- UK CBI Business Optimism, UK CBI Trends Total Orders and CBI Trends Selling Prices: UK CBI Business Optimism for January is predicted at -24. Forex traders can compare this to UK CBI Business Optimism for December, which was reported at -44. UK CBI Trends Total Orders for January are predicted at -25 and UK CBI Trends Selling Prices are predicted at 5. Forex traders can compare this to UK CBI Trends Total Orders for December, which were reported at -28 and to UK CBI Trends Selling Prices, which were reported at 6.
Here are the key factors to keep in mind today for Australian Dollar trades:
- Australian Westpac Consumer Confidence: Australian Westpac Consumer Confidence for January decreased by 1.8% monthly to 93.4. Forex traders can compare this to Australian Westpac Consumer Confidence for December, which decreased by 1.9% monthly to 95.1.
- Australian Skilled Vacancies: Australian Skilled Vacancies for December increased by 0.6% monthly. Forex traders can compare this to Australian Skilled Vacancies for November, which were reported flat 0.0% monthly.
Should price action for the GBPAUD remain inside the or breakout above the 1.9045 to 1.9155 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.9090
- Take Profit Zone: 1.9385 – 1.9520
- Stop Loss Level: 1.9000
Should price action for the GBPAUD breakdown below 1.9155 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.9000
- Take Profit Zone: 1.8650– 1.8765
- Stop Loss Level: 1.9155
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio. Forex trading for beginners often poses a tremendous challenge, take a look at how PaxForex ensures that you are on the right track from your first trade!
We are one of the fastest growing Forex Brokers in the Market. Trade with PaxForex to get the full Forex Trading experience which is based on...
- The Reliability on all Assets in the Market
- Trusted Worldwide for over a Decade
- Live Multi-Lingual Online Support 24/5