Source: PaxForex Premium Analytics Portal, Fundamental Insight
Singapore Industrial Production for February increased 16.6% monthly and 17.6% annualized. Economists predicted a decrease of 0.9% and a rise of 6.3%. Forex traders can compare this to Singapore Industrial Production for January, which dropped 10.4% monthly and expanded 2.4% annualized.
UK Retail Sales for February are predicted to increase 0.6% monthly and 7.8% annualized. Forex traders can compare this to UK Retail Sales for January, which rose 1.9% monthly and 9.1% annualized. UK Core Retail Sales for February are predicted to expand 0.5% monthly and 5.6% annualized. Forex traders can compare this to UK Core Retail Sales for January, which increased 1.7% monthly and 7.2% annualized.
Traders should remain cautious heading into the weekend by either lower trading volumes for positions taken today or adjusting risk management accordingly. Geopolitical tensions, inflation, and a stagnating economy remain primary risks ahead. Covid-19 cases continue to spike to records, further creating supply chain issues. Economic data, as evident in today’s Singapore industrial production data, remains volatile, while yesterday’s PMI data was mixed with a moderate bullish bias. The Bank of England FPC minutes could move the British Pound during the session if they reveal more dovishness than expected following three consecutive interest rate increases.
The forecast for the GBP/SGD is turning bearish, with the descending Ichimoku Kinko Hyo Cloud providing downside pressure. Adding to negative sentiment is the rejection by its flat Kijun-sen, but the Tenkan-sen maintains its uptrend, suggesting volatility ahead. Traders should monitor the CCI, following the rejection by the 100 level. A secondary push higher with a brief spike into extreme overbought territory is likely, from where a breakdown below 100 will offer the final sell signal. Can bears regain control over the GBP/SGD 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/SGD remain inside the or breakout above the 1.7025 to 1.7215 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Short Position @ 1.7130
- Take Profit Zone: 1.7525 – 1.7635
- Stop Loss Level: 1.6950
Should price action for the GBP/SGD breakout above 1.7025 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Long Position @ 1.6950
- Take Profit Zone: 1.6710 – 1.6800
- Stop Loss Level: 1.7025
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