Source: PaxForex Premium Analytics Portal, Fundamental Insight
The final UK GDP for the third quarter is predicted to increase 1.3% quarterly and 6.6% annualized. Forex traders can compare this to the UK GDP for the second quarter, which increased 5.5% quarterly and 23.6% annualized. Final UK Total Business Investment for the third quarter is predicted to increase 0.4% quarterly and 0.8% annualized. Forex traders can compare this to the UK Total Business Investment for the second quarter, which increased 4.5% quarterly and 12.9% annualized.
The UK Current Account Balance for the third quarter is predicted at -£15.600B. Forex traders can compare this to the UK Current Account Balance for the second quarter, reported at -£8.605B.
The Canadian New Housing Price Index for November is predicted to increase by 0.5% monthly. Forex traders can compare this to the Canadian New Housing Price Index for October, which increased 0.9% monthly.
The forecast for the GBP/CAD turned bearish after this currency pair advanced into its Ichimoku Kinko Hyo Cloud, which maintains a moderately bearish formation. Volatility is likely to increase after the ascending Tenkan-sen crossed above its flat Kijun-sen. Adding to the bearish outlook is the CCI after it recorded a lower high in extreme overbought territory. Traders should wait for a breakdown below 100 before entering their short positions. Can bears gather enough strength to force the GBP/CAD 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/CAD remain inside the or breakdown below the 1.7060 to 1.7160 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.7105
- Take Profit Zone: 1.6640 – 1.6720
- Stop Loss Level: 1.7200
Should price action for the GBP/CAD breakout above 1.7160, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.7200
- Take Profit Zone: 1.7335 – 1.7415
- Stop Loss Level: 1.7160
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio.
