Source: PaxForex Premium Analytics Portal, Fundamental Insight
New Zealand Electronic Retail Card Spending for March decreased 0.5% monthly and 1.3% annualized. Forex traders can compare this to New Zealand Electronic Retail Card Spending for February, which plunged 7.8% monthly and increased 1.1% annualized.
The Chinese PPI for March rose 8.3% annualized, and the Chinese CPI by 1.5% annualized. Economists predicted an increase of 7.9% and 1.2%. Forex traders can compare this to the Chinese PPI for February, which expanded 8.8% annualized, and the Chinese CPI, which rose 0.9% annualized.
UK Construction Output Seasonally Adjusted for February is predicted to increase 0.4% monthly and 6.8% annualized. Forex traders can compare this to UK Construction Output Seasonally Adjusted for January, which rose 1.1% monthly and 9.9% annualized.
The UK GDP for February is predicted to increase 0.3% in February, 0.9% for the three-month-over-three-month period ending in February, and 9.5% annualized. Forex traders can compare this to the UK GDP for January, which rose 0.8%, 1.1% for the three-month-over-three-month period ending in January, and 10.0% annualized.
UK Industrial Production for February is predicted to increase 0.3% monthly and 2.1% annualized. Forex traders can compare this to UK Industrial Production for January, which rose 0.7% monthly and 2.3% annualized. UK Manufacturing Production for February is predicted to rise 0.3% monthly and 3.0% annualized. Forex traders can compare this to UK Manufacturing Production for January, which expanded 0.8% monthly and 3.6% annualized.
The UK Visible Trade Balance for February is predicted at -£20.000B. Forex traders can compare this to the UK Visible Trade Balance for January, reported at -£26.500B.
The forecast for the GBP/NZD remains short-term bullish after this currency pair accelerated out of its horizontal support area. Adding to the rising upside momentum is the flatlining Tenkan-sen, but volatility may increase as the Kijun-sen maintains its downtrend. Long-term bearish pressures remain with the Ichimoku Kinko Hyo Cloud descending. A positive divergence in extreme oversold conditions preceded the breakout, but traders should monitor the CCI after it spiked into extreme overbought territory. A temporary move below 100 can lead to a minor sell-off, but if the CCI remains above zero, more upside is likely. Can bulls withstand a bearish attack and push the GBP/NZD 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/NZD remain inside the or breakout above the 1.8980 to 1.9090 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.9035
- Take Profit Zone: 1.9615– 1.9770
- Stop Loss Level: 1.8900
Should price action for the GBP/NZD breakdown below 1.8980 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.8900
- Take Profit Zone: 1.8625 – 1.8710
- Stop Loss Level: 1.8980
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