Source: PaxForex Premium Analytics Portal, Fundamental Insight
The UK Preliminary GDP for June is predicted to rise 0.2% monthly. Forex traders can compare this to the UK GDP for May, which contracted 0.1% monthly. The UK Preliminary GDP for the second quarter is predicted flat, at 0.0% quarterly, and to rise by 2.0% annualized. Forex traders can compare this to the first quarter GDP, which rose 0.1% quarterly and 0.2% annualized. UK Total Business Investment for the second quarter is predicted to expand by 0.8% quarterly and 8.1% annualized. Forex traders can compare this to UK Total Business Investment for the first quarter, which increased by 3.3% quarterly and 5.8% annualized.
UK Industrial Production for June is predicted to rise by 0.1% monthly and drop by 1.1% annualized. Forex traders can compare this to UK Industrial Production for May, which contracted by 0.6% monthly and 2.3% annualized. UK Manufacturing Production for June is predicted to expand by 0.2% monthly and 0.3% annualized. Forex traders can compare this to UK Manufacturing Production for May, which decreased by 0.2% monthly and 1.2% annualized.
The UK Visible Trade Balance for June is predicted at -£16.400B. Forex traders can compare this to the UK Visible Trade Balance for May, reported at -£18.720B. The UK Trade Balance Non-EU for June is predicted at -£6.390B. Forex traders can compare this to the UK Trade Balance Non-EU for May, reported at -£6.760B.
The US PPI for July is predicted to rise by 0.2% monthly and 0.7% annualized. Forex traders can compare this to the US PPI for May, which increased by 0.1% monthly and 0.1% annualized. The US Core PPI for July is predicted to expand by 0.2% monthly and 2.3% annualized. Forex traders can compare this to the US Core PPI for May, which increased by 0.1% monthly and 2.4% annualized.
Preliminary US Michigan Consumer Sentiment for August is predicted at 71.0. Forex traders can compare this to US Michigan Consumer Confidence for July, reported at 71.6. Preliminary Current Conditions for August are expected at 76.9, and Preliminary Expectations at 68.1. Forex traders can compare this to Current Conditions for July, reported at 76.6, and Expectations, reported at 68.3.
The forecast for the GBP/USD remains bullish after this currency pair retreated into its upward-shifting Ichimoku Kinko Hyo Cloud. Volatility could rise with the Kijun-sen flat and the Tenkan-sen moving lower. Traders should monitor the CCI in extreme oversold territory, where it could record a higher low. A breakout above -100 following a higher low may spark the next leg up. Can bulls regain control over the GBP/USD and drive price action 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/USD remain inside the or breakout above the 1.2650 to 1.2725 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.2680
- Take Profit Zone: 1.3000 – 1.3090
- Stop Loss Level: 1.2580
Should price action for the GBP/USD breakdown below 1.2650, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.2580
- Take Profit Zone: 1.2490 – 1.2535
- Stop Loss Level: 1.2650
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