Source: PaxForex Premium Analytics Portal, Fundamental Insight

The New Zealand Business PMI for December was reported at 53.7. Forex traders can compare this to the New Zealand Business PMI for November, reported at 50.6. New Zealand Permanent/Long-Term Migration for November was reported at 130. Forex traders can compare this to Permanent/Long-Term Migration for October, reported at 717. External Migration & Visitors for November increased 3.8% monthly. Forex traders can compare this to External Migration & Visitors for October, which decreased 27.3% monthly.

UK GfK Consumer Confidence for January was reported at -19. Economists predicted a figure of -15. Forex traders can compare this to UK GfK Consumer Confidence for December, reported at -15.

UK Retail Sales for December decreased 3.7% monthly and 0.9% annualized. Economists predicted a decrease of 0.6% and an increase of 3.4%. Forex traders can compare this to UK Retail Sales for November, which increased 1.0% monthly and 4.3% annualized. UK Core Retail Sales for December decreased 3.6 % monthly and 3.0% annualized. Economists predicted an increase of 0.5% and a decrease of 1.1%. Forex traders can compare this to UK Core Retail Sales for November, which increased 0.7% monthly and 2.2% annualized.

The forecast for the GBP/NZD started to turn cautiously bearish. This currency pair continues to grind higher, with the Kijun-sen and the Tenkan-sen ascending, but shows signs of increasing short-term bearish pressures. Traders should prepare for a counter-trend move into its ascending Ichimoku Kinko Hyo Cloud, which shows signs of topping out. The CCI formed s negative divergence in extreme overbought territory, and a breakdown below 100 could trigger a sell-off. Can bears regain control over the GBP/NZD and force a correction 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 2.0155 to 2.0220 zone the following trade set-up is recommended:

• Timeframe: D1           
• Recommendation: Short Position
• Entry Level: Short Position @ 2.0180
• Take Profit Zone: 1.9700– 1.9800
• Stop Loss Level: 2.0270

Should price action for the GBP/NZD breakout above 2.0220 the following trade set-up is recommended:

• Timeframe: D1           
• Recommendation: Long Position
• Entry Level: Long Position @ 2.0270
• Take Profit Zone: 2.0395 – 2.0475
• Stop Loss Level: 2.0220

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