Source: PaxForex Premium Analytics Portal, Fundamental Insight
UK GfK Consumer Confidence for May was reported at -9. Economists predicted a figure of -12. Forex traders can compare this to UK GfK Consumer Confidence for April, reported at -15. UK Retail Sales for April are predicted to increase by 4.5% monthly and 36.8% annualized. Forex traders can compare this to UK Retail Sales for March, which increased by 4.5% monthly and 7.2% annualized. UK Core Retail Sales for April are predicted to increase by 4.2% monthly 31.7% annualized. Forex traders can compare this to UK Core Retail Sales for March, which increased by 4.9% monthly and 7.9% annualized.
Canadian Retail Sales for March are predicted to increase by 2.3% monthly, and Canadian Core Retail are predicted to increase by 2.2% monthly. Forex traders can compare this to Canadian Retail Sales for February, which increased by 4.8% monthly, and to Canadian Core Retail Sales, which increased by 4.8% monthly.
The forecast for the GBP/CAD turned bullish following its rejection by the Ichimoku Kinko Hyo Cloud. Long-term prospects for the UK economy are brighter than for the Canadian one, starting in the labor market. Price action reversed, and the Tenkan-sen began to ascend, closing the gap to its flat Kijun-sen. Traders should expect more short-term volatility as the CCI reached extreme overbought territory. Can bulls sustain more upside pressure on the GBP/CAD and force it to challenge 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 1.7080 to 1.7150 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.7120
- Take Profit Zone: 1.7585 – 1.7675
- Stop Loss Level: 1.7000
Should price action for the GBP/CAD breakdown below 1.7080, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.7100
- Take Profit Zone: 1.6770 – 1.6870
- Stop Loss Level: 1.7080
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