Source: PaxForex Premium Analytics Portal, Fundamental Insight
UK Retail Sales for May increased by 12.0% monthly and decreased by 13.1% annualized. Economists predicted an increase of 5.7% and a decrease of 17.1%. Forex traders can compare this to UK Retail Sales for April, which decreased by 18.0% monthly and by 22.7% annualized. UK Core Retail Sales for May increased by 10.2% monthly and decreased by 9.8% annualized. Economists predicted an increase of 4.5% and a decrease of 14.4%. Forex traders can compare this to UK Core Retail Sales for April, which decreased by 15.0% monthly and by 18.5% annualized.
UK Public Sector Net Borrowing for May was reported at £54.50B. Economists predicted a figure of £47.3B. Forex traders can compare this to UK Public Sector Net Borrowing for April, which was reported at £47.77B. Canadian Retail Sales for April are predicted to decrease by 15.1% monthly, and Canadian Core Retail Sales are predicted to decrease by 13.5% monthly. Forex traders can compare this to Canadian Retail Sales for March, which decreased by 10.0% monthly, and to Canadian Core Retail Sales, which decreased by 0.4% monthly.
The GBP/CAD forecast turned more bullish after today’s economic data out of the UK. It showed a remarkable recovery in May retail sales after the Covid-19 lockdown forced a historic collapse. Government net borrowing was higher than expected, preventing a massive rally from unfolding. A gradual increase is this currency pair is expected until it will reach its horizontal resistance area located between two Ichimoku Kinko Hyo Cloud formations. Will bulls awaken as the trading week draws to a close? 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 1.6835 to 1.6925 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.6875
- Take Profit Zone: 1.7330 – 1.7485
- Stop Loss Level: 1.6750
Should price action for the GBP/CAD breakdown below 1.6835 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.6750
- Take Profit Zone: 1.6540 – 1.6610
- Stop Loss Level: 1.6835
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