Source: PaxForex Premium Analytics Portal, Fundamental Insight
The UK GDP for October increased 0.1% monthly, 0.9% for the three-month-over-three-month period ending in October, and 4.6% annualized. Economists predicted an increase of 0.4%, 1.0%, and 4.9%. Forex traders can compare this to the UK GDP for September, which increased 0.6%, 1.3% for the three-month-over-three-month period ending in September, and 5.3% annualized.
UK Construction Output Seasonally Adjusted for October decreased 1.8% monthly and increased 3.2% annualized. Economists predicted an increase of 0.2% and 5.0%. Forex traders can compare this to UK Construction Output Seasonally Adjusted for September, which increased 1.3% monthly and 7.2% annualized.
UK Industrial Production for October decreased 0.6% monthly and increased 1.4% annualized. Economists predicted an increase of 0.1% and 2.2%. Forex traders can compare this to UK Industrial Production for September, which decreased 0.4% monthly and increased 2.9% annualized. UK Manufacturing Production for October was reported flat at 0.0% monthly and increased 1.3% annualized. Economists predicted an increase of 0.1% monthly and 1.7% annualized. Forex traders can compare this to UK Manufacturing Production for September, which increased 0.1% monthly and 2.8% annualized.
The UK Visible Trade Balance for October was reported at -£13.930B and the UK Trade Balance Non-EU at -£8.620B. Forex traders can compare this to the UK Visible Trade Balance for September, reported at -£14.740B and the UK Trade Balance Non-EU at -£9.100B.
The US CPI for November is predicted to increase 0.7% monthly and 6.8% annualized. Forex traders can compare this to the US CPI for October, which increased 0.9% monthly and 6.2% annualized. The US Core CPI for November is predicted to increase 0.5% monthly and 4.9% annualized. Forex traders can compare this to the US Core CPI for October, which increased 0.6% monthly and 4.6% annualized.
Preliminary US Michigan Consumer Sentiment for December is predicted at 67.1. Forex traders can compare this to US Michigan Consumer Confidence for November, reported at 67.4. Preliminary Current Conditions for December are expected at 71.0, and Preliminary Expectations are predicted at 62.0. Forex traders can compare this to Current Conditions for November, reported at 73.6, and to Expectations, reported at 63.5. The US Monthly Budget Statement for November is predicted at -$195.0B. Forex traders can compare this to the US Monthly Budget Statement for October, reported at -$165.0B.
The forecast for the GBP/USD turned bullish after price action stabilized at support and started a rebound. Short-term volatility may remain as the Kijun-sen extends its move lower, but the Tenkan-sen turned sideways, suggesting a decrease in longer-term bearishness. While the Ichimoku Kinko Hyo Cloud continues to move lower, the CCI was able to reverse from a higher low and drifter out of extreme oversold territory with a move above -100. Can bulls regain control of the GBP/USD and pressure it 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 1.3170 to 1.3265 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.3215
- Take Profit Zone: 1.3540 – 1.3605
- Stop Loss Level: 1.3080
Should price action for the GBP/USD breakdown below 1.3170, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.3080
- Take Profit Zone: 1.2920 – 1.2980
- Stop Loss Level: 1.3170
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