Source: PaxForex Premium Analytics Portal, Fundamental Insight
UK Retail Sales for June increased 0.5% monthly and 9.7% annualized. Economists predicted an increase of 0.4% and 9.6%. Forex traders can compare this to UK Retail Sales for May, which decreased 1.3% monthly and increased 24.6% annualized. UK Core Retail Sales for June increased 0.3% monthly and 7.4% annualized. Economists predicted an increase of 0.6% and 8.2%. Forex traders can compare this to UK Core Retail Sales for May, which decreased 2.0% monthly and increased 21.7% annualized.
The Preliminary UK Markit Manufacturing PMI for July is predicted at 62.7. Forex traders can compare this to the UK Markit Manufacturing PMI for June, reported at 63.9. The Preliminary UK Markit Services PMI for July is predicted at 62.0. Forex traders can compare this to the UK Markit Services PMI for June, reported at 62.4. The Preliminary UK Markit Composite PMI for July is predicted at 61.9. Forex traders can compare this to the UK Markit Composite PMI for June, reported at 62.2.
Canadian Retail Sales for May are predicted to decrease 3.0% monthly, and Canadian Core Retail Sales are predicted to decrease 2.2% monthly. Forex traders can compare this to Canadian Retail Sales for April, which decreased 5.7% monthly, and to Canadian Core Retail Sales, which decreased 7.2% monthly.
The forecast for the GBP/CAD remains bullish after this currency pair corrected from its previous advance but maintained its upside momentum. Both the Tenkan-sen and the Kijun-sen turned flat, confirming the pause in the rally and suggesting an increase in volatility ahead until the bullish advance can resume. The Ichimoku Kinko Hyo Cloud adopted a bullish bias, and the CCI retreated from extreme overbought territory with plenty of upside potential. Can bulls force the GBP/CAD to extend its advance until price action can challenge its 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 1.7225 to 1.7360 zone, PaxForex recommends te following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.7290
- Take Profit Zone: 1.7570 – 1.7675
- Stop Loss Level: 1.7145
Should price action for the GBP/CAD breakdown below 1.7225, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.7145
- Take Profit Zone: 1.7000 – 1.7060
- Stop Loss Level: 1.7225
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