Here are the key factors to keep in mind today for British Pound trades:
- UK Industrial & Manufacturing Production: Economists expect an increase in industrial production of 0.2% in January monthly and 1.3% annualized. Manufacturing production is expected to increase by 0.2% monthly and 2.6% annualized. Forex traders can compare this with December’s report which showed a monthly contraction of 0.2% in industrial production and an annualized increase of 0.5% while manufacturing production rose only 0.1% monthly and showed an annualized gain of 2.4%. Forex traders should expect violent trading after the release of this report, but the British Pound may give in to the bears and trend lower.
- UK NIESR GDP Estimate: Adding to hectic trading in the British currency may after the release of the NIESR GDP estimate for February. Forex traders may be disappointed if the report comes in at January’s 0.7% or below. An increase of 0.8% or above is very unlikely and profit taking could add volume throughout the trading session.
Here are the key factors to keep in mind today for Australian Dollar trades:
- Australian Westpac Consumer Confidence: The Australian consumer is feeling less confident in March as Westpac Consumer Confidence dropped 1.2%. This can be compared to the surge of 8.0% reported in February.
- Australian Home Loans: The Australian housing market came under pressure in January as home loans plunged 3.5%. Economists expected a contraction of only 2.0% and forex traders can compare this with the 2.7% increase reported in December.
- Australian Investment Lending: Investment lending contracted by 0.1% in January and the value of loans dropped by 1.0%. This can be compared to December’s increase of 6.4% in investment lending while the value of loans rose 3.5%.
Should price action for the GBPAUD remain inside the 1.9800 to 1.9850 zone or breakdown below it the following trade set-up is recommended:
- Timeframe: H4
- Recommendation: Short Position
- Entry Level: Short Position @ 1.9820
- Take Profit Zone: 1.9400 – 1.9450
- Stop Loss Level: 2.0000
Should price action for the GBPAUD breakout above 1.9850 the following trade set-up is recommended:
- Timeframe: H4
- Recommendation: Long Position
- Entry Level: Long Position @ 1.9900
- Take Profit Zone: 1.9980 – 2.0000
- Stop Loss Level: 1.9800
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio.
