Forex traders are awaiting a series of economic reports out of the UK in order to assess if current support levels will hold in the British Pound or if today’s data will inspire a fresh wave of sell orders. The May GDP figure is anticipated to show a recover with a slight increase in the service sector. Industrial and manufacturing production as well as construction output are all expected to show a solid increase. Will today’s data allow bulls to push price action higher or will it give bears ammunition to attempt a new breakdown in the GBPAUD? Today’s fundamental analysis takes a look at the upside and downside potential of this currency pair.
Here are the key factors to keep in mind today for British Pound trades:
- UK GDP: The UK GDP for May is predicted to increase by 0.3% monthly and by 0.1% for the three-month-over-three-month period ending in May. Forex traders can compare this to the UK GDP for April which decreased by 0.4% monthly and which increased by 0.3% for the three-month-over-three-month period ending in April.
- UK Index of Services: The UK Index of Services for May is predicted to increase by 0.1% monthly and by 0.1% for the three-month-over-three-month period ending in May. Forex traders can compare this to the UK Index of Services for April which was reported flat at 0.0% monthly and which increased by 0.2% for the three-month-over-three-month period ending in April.
- UK Industrial Production and UK Manufacturing Production: UK Industrial Production for May is predicted to increase by 1.5% monthly and by 1.2% annualized. Forex traders can compare this to UK Industrial Production for April which decreased by 2.7% monthly and by 1.0% annualized. UK Manufacturing Production for May is predicted to increase by 2.2% monthly and by 1.1% annualized. Forex traders can compare this to UK Manufacturing Production for April which decreased by 3.9% monthly and by 0.8% annualized.
- UK Construction Output Seasonally Adjusted: UK Construction Output Seasonally Adjusted for May is predicted to increase by 0.4% monthly and by 0.9% annualized. Forex traders can compare this to UK Construction Output Seasonally Adjusted for April which decreased by 0.4% monthly and which increased by 2.4% annualized.
- UK Trade Balance: The UK Visible Trade Balance for May is predicted at -£12.500B. Forex traders can compare this to the UK Visible Trade Balance for April which was reported at -£12.113B. The UK Trade Balance Non EU for May is predicted at -£4.600B. Forex traders can compare this to the UK Trade Balance Non EU for April which was reported at -£4.595B. The UK Total Trade Balance for May is predicted at -£3.200B. Forex traders can compare this to the UK Total Trade Balance for April which was reported at -£2.740B.
Australian consumer confidence eroded further in July which pressured the Australian Dollar to the downside and extended the rise in the GBPAUD off off strong support levels. Chinese inflation data came in mixed with the PPI grinding to a standstill as the trade war between the US and China shows little signs of abating. Can the uptrend in this currency pair turn into a sustainable rally or is this a temporary advance in the GBPAUD? Follow the PaxForex Daily Fundamental Analysis and find out how more forex traders every day are proud owners of a profitable forex portfolio!
Here are the key factors to keep in mind today for Australian Dollar trades:
- Australian Westpac Consumer Confidence: Australian Westpac Consumer Confidence for July decreased by 4.1% monthly to 96.5. Forex traders can compare this to Australian Westpac Consumer Confidence for June which decreased by 0.6% monthly to 100.7.
- Chinese PPI and Chinese CPI: The Chinese PPI for June was reported flat at 0.0% annualized and the Chinese CPI increased by 2.7% annualized. Economists predicted an increase of 0.2% and of 2.7%. Forex traders can compare this to the Chinese PPI for May which increased by 0.6% annualized and to the Chinese CPI which increased by 2.7% annualized.
Should price action for the GBPAUD remain inside the or breakout above the 1.7940 to 1.8030 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.7990
- Take Profit Zone: 1.8365 – 1.8420
- Stop Loss Level: 1.7900
Should price action for the GBPAUD breakdown below 1.7940 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.7900
- Take Profit Zone: 1.7710 – 1.7755
- Stop Loss Level: 1.7990
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 key in achieving your goals; join our fast growing community of profitable forex traders today!
