Source: PaxForex Premium Analytics Portal, Fundamental Insight
The UK Jobless Claims Change for July is predicted to be 14.5K. Forex traders can compare this to the UK Jobless Claims Change for June, reported at 32.3K.
The UK Employment Change for the tri-monthly period ending in June is predicted at 26K, and the ILO Unemployment Rate is at 4.5%. Forex traders can compare this to the UK Employment Change for May, reported at 19K, and the ILO Unemployment Rate, reported at 4.4%. Average Weekly Earnings for the tri-monthly period ending in June are predicted to increase by 4.6% annualized, and Average Weekly Earnings Excluding Bonuses by 4.6% annualized. Forex traders can compare this to Average Weekly Earnings for May, which increased by 5.7%, and Average Weekly Earnings Excluding Bonuses, which increased by 5.7%.
The US NFIB Small Business Optimism Index for July is predicted at 91.5. Forex traders can compare this to the NFIB Small Business Optimism Index for June, reported at 91.5.
The US PPI for July is predicted to rise by 0.2% monthly and by 2.3% annualized. Forex traders can compare this to the US PPI for June, which accelerated by 0.2% monthly and 2.6% annualized. The US Core PPI for July is predicted to expand by 0.2% monthly and by 2.7% annualized. Forex traders can compare this to the US Core PPI for June, which expanded 0.4% monthly and 3.0% annualized.
The forecast for the GBP/USD is cautiously bearish after this currency pair bounced off its Ichimoku Kinko Hyo Cloud. Price action trades above its downward-shifting Tenkan-sen but below its flat Kijun-sen. The descending Senkou Span A of the Ichimoku Kinko Hyo Cloud is in the process of a bearish crossover below the flat Senkou Span B, which can add more medium-term selling pressure. Traders should also monitor the CCI following its breakout from extreme oversold conditions. This technical indicator is losing upside momentum and trades below zero with a likely reversal adding bearishness. Can bears regain control over the GBP/USD and push 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/USD remain inside the or breakdown below the 1.2760 to 1.2795 zone, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.2725
- Take Profit Zone: 1.2580 – 1.2630
- Stop Loss Level: 1.2830
Should price action for the GBP/USD break out above 1.2795, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.2830
- Take Profit Zone: 1.2855 – 1.2895
- Stop Loss Level: 1.2795
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