Source: PaxForex Premium Analytics Portal, Fundamental Insight
New Zealand Electronic Retail Card Spending for December contracted 2.0% monthly and 0.6% annualized. Forex traders can compare this to New Zealand Electronic Retail Card Spending for November, which increased by 1.7% monthly and 2.1% annualized.
The UK CPI for December rose 0.4% monthly and 4.0% annualized. Economists predicted an increase of 0.2% and 3.8%. Forex traders can compare this to the UK CPI for November, which decreased by 0.2% monthly and expanded by 3.9% annualized. The UK Core CPI for December jumped 0.6% monthly and surged 5.1% annualized. Economists predicted an increase of 0.4% and 4.9%. Forex traders can compare this to the UK CPI for November, which dropped by 0.3% monthly and accelerated by 5.1% annualized.
The UK PPI Input for December decreased by 1.2% monthly and 2.8% annualized. Economists predicted a contraction of 0.7% and 1.9%. Forex traders can compare this to the UK PPI Input for November, which dropped by 0.4% monthly and 2.7% annualized. The UK PPI Output for December decreased by 0.6% monthly and rose 0.1% annualized. Economists predicted a contraction of 0.2% and a rise of 0.4%. Forex traders can compare this to the UK PPI Output for November, which decreased by 0.1% monthly and 0.1% annualized. The UK PPI Core Output for December was flat at 0.0% monthly and rose 0.1% annualized. Forex traders can compare this to the UK PPI Core Output for November, which was flat at 0.0% monthly and expanded by 0.2% annualized.
The UK RPI for December increased by 0.5% monthly and 5.2% annualized. Economists predicted a rise of 0.4% and 5.1%. Forex traders can compare this to the UK RPI for November, which contracted by 0.1% monthly and accelerated by 5.3% annualized. The UK Core RPI for December accelerated by 0.4% monthly and 4.0% annualized. Forex traders can compare this to the UK Core RPI for November, which contracted by 0.2% monthly and expanded by 4.1% annualized.
The forecast for the GBP/NZD is moderately bearish after this currency pair accelerated into its horizontal resistance area. The downward-shifting Ichimoku Kinko Hyo Cloud provides downside pressure, but short-term volatility could increase following a bullish crossover between the Tenkan-sen and the Kijun-sen. Traders should also monitor the CCI in extreme overbought territory and the formation of a negative divergence. A breakdown below 100 could trigger a sell-off. Can bears regain control over the GBP/NZD and force price action into its horizontal support 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 breakdown below the 2.0615 to 2.0695 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 2.0645
- Take Profit Zone: 2.0190– 2.0270
- Stop Loss Level: 2.0755
Should price action for the GBP/NZD breakout above 2.0695 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 2.0755
- Take Profit Zone: 2.0840 – 2.0890
- Stop Loss Level: 2.0695
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