Source: PaxForex Premium Analytics Portal, Fundamental Insight
UK Construction Output Seasonally Adjusted for December is predicted to decrease by 0.2% monthly and rise by 2.8% annualized. Forex traders can compare this to UK Construction Output Seasonally Adjusted for November, which rose by 0.4% monthly and 4.0% annualized.
UK Total Business Investment for the fourth quarter is predicted to decrease by 0.3% quarterly. Forex traders can compare this to UK Total Business Investment for the third quarter, which dropped by 2.5% quarterly,
The UK GDP for December is predicted to decrease by 0.3% monthly, come in at 0.0% for the three-month-over-three-month period ending in December, and rise by 0.4% annualized. Forex traders can compare this to the UK GDP for November, which rose by 0.1%, contracted by 0.3% for the three-month-over-three-month period ending in November, and expanded by 1.9% annualized.
UK Industrial Production for December is predicted to decrease by 0.2% monthly and 5.3% annualized. Forex traders can compare this to UK Industrial Production for November, which contracted by 0.2% monthly and 5.1% annualized. UK Manufacturing Production for December is predicted to drop by 0.2% monthly and by 6.1% annualized. Forex traders can compare this to UK Manufacturing Production for November, which decreased by 0.5% monthly and 5.9% annualized.
The UK Visible Trade Balance for December is predicted at -£16.400B. Forex traders can compare this to the UK Visible Trade Balance for November, reported at -£15.623B.
The UK NIESR GDP Estimate for January is predicted to decrease by 0.1% monthly. Forex traders can compare this to the UK NIESR GDP Estimate for December, which increased by 0.1% monthly.
The Canadian Employment Report for January is predicted to show the addition of 15.0K jobs and an Unemployment Rate of 5.1%. Forex traders can compare this to the Canadian Employment Report for December, which showed the addition of 104.0K jobs and an Unemployment Rate of 5.0%.
The forecast for the GBP/CAD turned bullish after this currency pair corrected into its ascending Ichimoku Kinko Hyo Cloud. The flat Kijun-sen and Tenkan-sen suggest a short-term rise in volatility as bulls and bears fight for control over price action. Traders should also monitor the CCI following its breakout from extreme oversold territory. A move above zero could ignite the next leg higher. Can bulls overpower bears and push the GBP/CAD into its horizontal resistance area and fresh 2023 highs? 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 breakout above the 1.6215 to 1.6330 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.6285
- Take Profit Zone: 1.6690 – 1.6850
- Stop Loss Level: 1.6125
Should price action for the GBP/CAD breakdown below 1.6215, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.6125
- Take Profit Zone: 1.5890 – 1.5975
- Stop Loss Level: 1.6215
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