Source: PaxForex Premium Analytics Portal, Fundamental Insight
UK GfK Consumer Confidence for July came in at -13. Economists predicted a figure of -12. Forex traders can compare this to UK GfK Consumer Confidence for June, reported at -14.
UK Retail Sales for June are predicted to decrease by 0.6% monthly and rise by 0.2% annualized. Forex traders can compare this to UK Retail Sales for May, which increased by 2.9% monthly and 1.3% annualized. UK Core Retail Sales for June are predicted to contract by 0.5% monthly and expand by 0.2% annualized. Forex traders can compare this to UK Core Retail Sales for May, which increased by 2.9% monthly and 1.9% annualized.
UK Public Sector Net Borrowing for June is predicted at -£12.00B and UK Public Sector Net Borrowing excluding Banking Groups at -£12.900B. Forex traders can compare this to UK Public Sector Net Borrowing for May, reported at -£14.100B, and to UK Public Sector Net Borrowing excluding Banking Groups, reported at -£15.000B.
Canadian Retail Sales for May are predicted to decrease by 0.5% monthly, and Canadian Core Retail Sales to contract by 0.5% monthly. Forex traders can compare this to Canadian Retail Sales for April, which rose by 0.7% monthly, and Canadian Core Retail Sales, which accelerated by 1.8% monthly.
The Canadian Industrial Product Price Index for June is predicted to increase by 0.2% monthly, and the Canadian Raw Materials Price Index is predicted to decrease by 0.7% monthly. Forex traders can compare this to the Canadian Industrial Product Price Index for May, which came in flat at 0.0% monthly, and to the Canadian Raw Materials Price Index, which contracted by 1.0% monthly.
The forecast for the GBP/CAD has turned cautiously bearish in the near term after this currency pair reached its horizontal resistance area. The Tenkan-sen and the Kijun-sen have flatlined, confirming the lack of short-term upside momentum. The Senkou Span A and the Senkou Span B of the Ichimoku Kinko Hyo Cloud continue to narrow, suggesting a more substantial trend reversal may follow. Traders should also monitor the CCI following its breakdown from extreme overbought territory. This technical indicator has plenty of downside potential, and a move below zero could accelerate the sell-off. Can bears maintain control over the GBP/CAD and force price action 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 1.7700 to 1.7755 zone, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.7730
- Take Profit Zone: 1.7445 – 1.7515
- Stop Loss Level: 1.7800
Should price action for the GBP/CAD break out above 1.7755, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.7800
- Take Profit Zone: 1.7880 – 1.7955
- Stop Loss Level: 1.7755
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