Source: PaxForex Premium Analytics Portal, Fundamental Insight
The UK Jobless Claims Change for January came in at 14.1K. Economists predicted a figure of 15.2K. Forex traders can compare this to the UK Jobless Claims Change for December, reported at 5.5K.
The UK Employment Change for the tri-monthly period ending in December came in at 72K, and the ILO Unemployment Rate at 3.8%. Economists predicted a reading of 73K and 4.0%. Forex traders can compare this to the UK Employment Change for November, reported at 73K, and the ILO Unemployment Rate, reported at 4.2%. Average Weekly Earnings for the tri-monthly period ending in December increased 5.8% annualized, and Average Weekly Earnings Excluding Bonuses rose 6.2% annualized. Economists predicted a rise of 5.6% and 6.0%. Forex traders can compare this to Average Weekly Earnings for November, which rose 6.7%, and to Average Weekly Earnings Excluding Bonuses, which increased 6.7%.
The US NFIB Small Business Optimism Index for January is predicted at 92.3. Forex traders can compare this to the NFIB Small Business Optimism Index for December, reported at 91.9.
The US CPI for January is predicted to increase by 0.2% monthly and by 2.9% annualized. Forex traders can compare this to the US CPI for December, which rose by 0.3% monthly and 3.4% annualized. The US Core CPI for January is predicted to expand by 0.3% monthly and 3.7% annualized. Forex traders can compare this to the US Core CPI for December, which rose by 0.3% monthly and 3.9% annualized. The CPI report will dictate the course of the GBP/USD this trading session, with a higher-than-expected reading likely to pressure this currency pair lower.
The forecast for the GBP/USD turned cautiously bearish in the short term after this currency pair dropped into its Ichimoku Kinko Hyo Cloud, which is drifting higher but narrowing. The descending Senkou Span A could complete a bearish crossover below the ascending Senkou Span B, spiking downside pressure. Following a bearish crossover of the Tenkan-sen below the Kijun-sen, both indicators have flatlined, confirming the absence of short-term bullishness. Traders should also monitor the CCI after it recorded a lower low in extreme oversold territory followed by a breakout. Failure to push above zero could lead this technical indicator to resume its downtrend and drag this currency pair lower. Can bears overpower bulls and regain control of the GBP/USD to force 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 1.2600 to 1.2655 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.2615
- Take Profit Zone: 1.2440 – 1.2515
- Stop Loss Level: 1.2680
Should price action for the GBP/USD breakout above 1.2655, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.2680
- Take Profit Zone: 1.2770 – 1.2825
- Stop Loss Level: 1.2655
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