Source: PaxForex Premium Analytics Portal, Fundamental Insight
UK Retail Sales for December are predicted to increase by 1.2% monthly and by 4.2% annualized. Forex traders can compare this to UK Retail Sales for November, which decreased by 3.8% monthly, and which increased by 2.4% annualized. UK Core Retail Sales for December are predicted to increase by 0.8% monthly and by 7.0% annualized. Forex traders can compare this to UK Core Retail Sales for November, which decreased by 2.6% monthly, and which increased by 5.6% annualized. UK Public Sector Net Borrowing for December is predicted at £27.30B. Forex traders can compare this to UK Public Sector Net Borrowing for November, reported at £30.84B.
Canadian Retail Sales for November are predicted to increase by 0.1% monthly, and Canadian Core Retail Sales are predicted to increase by 0.3% monthly. Forex traders can compare this to Canadian Retail Sales for October, which increased by 0.4% monthly, and to Canadian Core Retail Sales, which increased by 1.0% monthly.
The forecast for the GBP/CAD remains bullish as the UK is working on implementing Brexit changes to positions its economy for growth this decade. Adding to the bullish scenario is the ascending Kijun-sen, which is closing in on the flat Tenkan-sen. A positive crossover can spark fresh buy orders in this currency pair. The Ichimoku Kinko Hyo Cloud is in a sideways trend, and the CCI is in extreme overbought territory. Traders should expect a brief retreat from where more upside can follow. Will bulls force the GBP/CAD into its next horizontal resistance 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 breakout above the 1.7345 to 1.7415 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.7370
- Take Profit Zone: 1.7605 – 1.7675
- Stop Loss Level: 1.7315
Should price action for the GBP/CAD breakdown below 1.7345 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.7315
- Take Profit Zone: 1.7195– 1.7235
- Stop Loss Level: 1.7345
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