Source: PaxForex Premium Analytics Portal, Fundamental Insight
The UK Employment Change for the tri-monthly period ending in July was reported at -12K, and the ILO Unemployment Rate was reported at 4.1%. Economists predicted a reading of -125K and 4.1%. Forex traders can compare this to the UK Employment Change for June, reported at 220K, and to the ILO Unemployment Rate, reported at 3.9%. Average Weekly Earnings for the tri-monthly period ending in July decreased by 1.0% annualized, and Average Weekly Earnings Excluding Bonuses increased by 0.2% annualized. Economists predicted a decrease of 1.3% and 0.2%. Forex traders can compare this to Average Weekly Earnings for June, which decreased by 1.2%, and to Average Weekly Earnings Excluding Bonuses, which decreased by 0.2%.
The UK Jobless Claims Change for August was reported at 73.7K. Economists predicted a figure of 100.0K. Forex traders can compare this to the UK Jobless Claims Change for July, reported at 69.9K. Canadian Manufacturing Sales for July are predicted to increase by 8.7% monthly. Forex traders can compare this to Canadian Manufacturing Sales for June, which increased by 20.7% monthly.
The forecast for the GBP/CAD turned bullish after better-than-expected employment data out of the UK, which also experienced an unexpected increase in average earnings. The labor market remains resilient, and the unemployment rate is low compared to the EU, the US, and Canada. With the economic outlook bullish, price action is expected to close the gap to its flatlining Kijun-sen. This currency pair can then attempt to reach its next horizontal resistance area on top of its Ichimoku Kinko Hyo Cloud. Will bulls have the strength to rally? 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 1.6880 to 1.6940 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.6910
- Take Profit Zone: 1.7295 – 1.7390
- Stop Loss Level: 1.6800
Should price action for the GBP/CAD breakdown below 1.6880 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.6800
- Take Profit Zone: 1.6600 – 1.6640
- Stop Loss Level: 1.6880
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