Brexit continues to be in the driving seat for the British Pound. Following positive comments out of the EU that a deal is possible before October 31st 2019, the British currency rallied. Sentiment shifted towards a more cautious tone after Ireland said that while the mood has improved, both sides remain a distance apart. Today’s CBI data out of the UK is expected to show weakness in order with a minor price recovery. Inflation is running slightly above the the Bank of England’s long-term price target. Will today’s data move the GBPAUD? Subscribe to the PaxForex Daily Fundamental Analysis and take the profitable side of this currency pair.
Australian PMI data came in mixed during the Asian morning session. The manufacturing sector dipped into contractionary territory while the services sector managed to move back above 50.0 and into expansion. The Composite PMI also exited contractionary readings which points towards a broader recover in September. The Reserve Bank of Australia is looking to lower interest rates by 25 basis points at its next meeting if economic data remains depressed. Is the GBPAUD on the verge of a sell-off? Today’s fundamental analysis will cover price action in both directions.
Here is the key factor to keep in mind today for British Pound trades:
- UK CBI Trends Total Orders and CBI Trends Selling Prices: UK CBI Trends Total Orders for September are predicted at -16 and CBI Trends Selling Prices are predicted at 0. Forex traders can compare this to CBI Trends Total Orders for August which were reported at -13 and to CBI Trends Selling Prices which were reported at -2.
Here is the key factor to keep in mind today for Australian Dollar trades:
- Australian CBA Manufacturing PMI, CBA Services PMI and CBA Composite PMI: The Preliminary Australian Manufacturing PMI for September was reported at 49.4. Forex traders can compare this to the Australian CBA Manufacturing PMI for August which was reported at 50.9.The Preliminary Australian CBA Services PMI for September was reported at 52.5. Forex traders can compare this to the Australian CBA Services PMI for August which was reported at 49.1. The Preliminary Australian CBA Composite PMI for September was reported at 51.9. Forex traders can compare this to the Australian CBA Composite PMI for for August which was reported at 49.3.
Should price action for the GBPAUD remain inside the or breakdown below the 1.8310 to 1.8445 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.8370
- Take Profit Zone: 1.7790 – 1.7880
- Stop Loss Level: 1.8500
Should price action for the GBPAUD breakout above 1.8445 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.8500
- Take Profit Zone: 1.8715 – 1.8880
- Stop Loss Level: 1.8400
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio. Did you know that trading with the right forex broker will yield you more pips per trade, using the same strategy? Find out now why more forex traders prefer to grow their balance at PaxForex every day!
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
