Source: PaxForex Premium Analytics Portal, Fundamental Insight
The UK Jobless Claims Change for November is predicted at 3.5K. Forex traders can compare this to the UK Jobless Claims Change for October, reported at 3.3K.
The UK Employment Change for the tri-monthly period ending in October is predicted at -17K, and the ILO Unemployment Rate is predicted at 3.7%. Forex traders can compare this to the UK Employment Change for September, reported at -52K, and to the ILO Unemployment Rate at 3.6%. Average Weekly Earnings for the tri-monthly period ending in October are predicted to increase by 6.2% annualized, and Average Weekly Earnings Excluding Bonuses by 5.9% annualized. Forex traders can compare this to Average Weekly Earnings for September, which increased by 6.0%, and Average Weekly Earnings Excluding Bonuses, which increased by 5.7%.
The US CPI for November is predicted to increase by 0.3% monthly and 7.3% annualized. Forex traders can compare this to the US CPI for October, which rose 0.4% monthly and 7.7% annualized. The US Core CPI for November is predicted to expand 0.3% monthly and 6.1% annualized. Forex traders can compare this to the US Core CPI for October, which rose 0.3% monthly and 6.3% annualized.
The US NFIB Small Business Optimism Index for November is predicted at 41.3. Forex traders can compare this to the NFIB Small Business Optimism Index for October, reported at 40.4.
Traders also await the Bank of England Financial Stability Report and minutes from the latest Bank of England meeting for potential clues about future monetary policy changes. Bank of England Governor Bailey will give a speech thirty minutes after the release of the minutes, which could impact price action in the British Pound. US Real Earnings for November, and the eagerly anticipated CPI, after the PPI came in hotter than expected, could move the US Dollar.
The forecast for the GBP/USD remains bullish as this currency pair extends the recovery from its massive sell-off and tries to add to the 2,200+ pips rally. Adding upside momentum is the ascending Kijun-sen and the Tenkan-sen, confirming short-term bullishness. The Ichimoku Kinko Hyo Cloud also moves higher, suggesting medium-term upside pressure, which favors more upside potential. Traders should monitor the CCI following its breakdown from extreme overbought territory. It remains well above the zero barrier, and while a few choppy trading sessions could follow, it favors more upside. Can bulls continue their stampede and power the GBP/USD into its 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 1.2200 to 1.2340 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.2270
- Take Profit Zone: 1.2665 – 1.2770
- Stop Loss Level: 1.2120
Should price action for the GBP/USD breakdown below 1.2200, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.2120
- Take Profit Zone: 1.1900 – 1.1950
- Stop Loss Level: 1.2200
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