Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Bank of England decided to keep interest rates unchanged at 0.10% and lowered the Asset Purchase Target to £725B. Economists predicted no change. Forex traders can compare this to the previous Bank of England meeting where the UK central bank decided to keep interest rates unchanged at 0.10%, and the Asset Purchase Target idle at £745B. The UK Construction PMI for July is predicted at 57.0. Forex traders can compare this to the UK Construction PMI for June, reported at 55.3.
US Initial Jobless Claims for the week of August 1st are predicted at 1,415K, and US Continuing Claims for the week of July 25th are predicted at 16,720K. Forex traders can compare this to US Initial Jobless Claims for the week of July 25th, which were reported at 1,434K, and to US Continuing Claims for the week of July 18th, which were reported at 17,018K.
The forecast for the GBP/USD remains bullish. The Bank of England kept its interest rate unchanged at 0.10% and lowered the asset purchase target to £725 billion. Forex traders are now awaiting US initial jobless claims data to see if the uptrend over the past two weeks will continue. The ascending Ichimoku Kinko Hyo Cloud supports more gains, while the Kijun-sen and Tenkan-sen are trending higher. Will bulls push this currency pair into the next 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 1.3100 to 1.3200 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.3165
- Take Profit Zone: 1.3420 – 1.3515
- Stop Loss Level: 1.3055
Should price action for the GBP/USD breakdown below 1.3100 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.3055
- Take Profit Zone: 1.2815 – 1.2900
- Stop Loss Level: 1.3100
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