Source: PaxForex Premium Analytics Portal, Fundamental Insight
UK Retail Sales for October increased 0.8% monthly and decreased 1.3% annualized. Economists predicted an increase of 0.5% and a decrease of 2.0%. Forex traders can compare this to UK Retail Sales for September, which decreased 0.2% monthly and 0.6% annualized. UK Core Retail Sales for October increased 1.6 % monthly and decreased 1.8% annualized. Economists predicted an increase of 0.6% and a decrease of 3.1%. Forex traders can compare this to UK Core Retail Sales for September, which decreased 0.4% monthly and 1.9% annualized.
UK Public Sector Net Borrowing for October was reported at £18.000B, and UK Public Sector Net Cash Requirements at £61.452B. Forex traders can compare this to UK Public Sector Net Borrowing for September, reported at £21.010B, and UK Public Sector Net Cash Requirements, reported at £4.688B.
Canadian Retail Sales for September are predicted to decrease 1.7% monthly, and Canadian Core Retail Sales are predicted to decrease 1.0% monthly. Forex traders can compare this to Canadian Retail Sales for August, which increased 2.1% monthly, and Canadian Core Retail Sales, which increased 2.8% monthly. The Canadian New Housing Price Index for October is predicted to increase by 0.5% monthly. Forex traders can compare this to the Canadian New Housing Price Index for September, which increased 0.4% monthly.
The forecast for the GBP/CAD remains bullish after price action bounced higher from its horizontal support area. Volatility is likely to increase after the Tenkan-sen and the Kijun-sen have entered a sideways trend, suggesting the absence of short-term bullish momentum while underlying fundamental factors improve. While the Ichimoku Kinko Hyo Cloud shows a bearish formation, early signs of stabilization appeared after the Senkou Span B ended its descend. The CCI moved into extreme overbought territory. Traders should wait for a breakdown below 100 and monitor for an expected push higher before adding new buy orders. Can bulls regain control over the GBP/CAD and force it into 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 1.6960 to 1.7050 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.7000
- Take Profit Zone: 1.7260 – 1.7340
- Stop Loss Level: 1.6900
Should price action for the GBP/CAD breakdown below 1.6960, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.6900
- Take Profit Zone: 1.6770 – 1.6810
- Stop Loss Level: 1.6960
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