Source: PaxForex Premium Analytics Portal, Fundamental Insight
The New Zealand Trade Balance for October came in at -NZ$1,709M monthly and at -NZ$14,810M annualized. Forex traders can compare this to the New Zealand Trade Balance for September, reported at -NZ$2,425M monthly and -NZ$15,410M annualized. Exports for October came in at NZ$5.40B, and Imports at NZ$7.11B. Forex traders can compare this to Exports for September, reported at NZ$4.77B, and Imports at NZ$7.19B.
New Zealand Credit Card Spending for October decreased by 2.9% annualized. Forex traders can compare this to New Zealand Credit Card Spending for September, which increased 2.8% annualized.
UK Public Sector Net Borrowing for October came in at -£13.970B, and UK Public Sector Net Cash Requirements at -£13.329B. Economists predicted a reading of -£21.000B and -£13.700B. Forex traders can compare this to UK Public Sector Net Borrowing for September, reported at -£13.720B, and to UK Public Sector Net Cash Requirements at -£11.724B.
UK Labor Productivity for the third quarter decreased by 0.2% quarterly. Forex traders can compare this to UK Labor Productivity for the second quarter, which rose by 0.7% quarterly.
The British Pound could receive the most attention during today’s trading session amid a series of speeches by Bank of England members. Traders will hear from Pill, a Bank of England Monetary Policy Committee (MPC) Member, Bank of England Governor Bailey, Bank of England MPC Member Mann, Bank of England MPC Member Ramsden, and Bank of England MPC Member Haskel. The speeches are part of their testimony on inflation and economic outlooks before Parliament’s Treasury Committee. It could inject volatility and trading volume if they deliver a surprise statement on their monetary policy assessment or view on the UK economy.
The forecast for the GBP/NZD is cautiously bullish after the lower band of its horizontal resistance area rejected this currency pair. Price action stabilized inside its narrowing Ichimoku Kinko Hyo Cloud, where a bullish crossover of the Senkou Span A above the Senkou Span B could follow. The ascending Kijun-sen and the flat Tenkan-sen also signal more volatility ahead. Traders should monitor the CCI after correcting into extreme oversold territory, where it could create a higher low. Should this technical indicator complete and sustain a breakout above -100, price action may reverse its most recent sell-off. Can bulls regain control over the GBP/NZD and push this currency pair 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 2.0600 to 2.0670 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 2.0640
- Take Profit Zone: 2.0970 – 2.1100
- Stop Loss Level: 2.0560
Should price action for the GBP/NZD breakdown below 2.0600 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 2.0560
- Take Profit Zone: 2.0425 – 2.0500
- Stop Loss Level: 2.0600
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio.
