Source: PaxForex Premium Analytics Portal, Fundamental Insight
The UK Jobless Claims Change for January came in at -31.9K. Economists predicted a figure of -28.0K. Forex traders can compare this to the UK Jobless Claims Change for December, reported at -51.6K. UK Labor Productivity for the fourth quarter rose 1.0% quarterly. Forex traders can compare this to UK Labor Productivity for the third quarter, which decreased 1.5% quarterly.
The UK Employment Change for the tri-monthly period ending in December came in at -38K and the ILO Unemployment Rate at 4.1%. Economists predicted a reading of -65K and of 4.1%. Forex traders can compare this to the UK Employment Change for November, reported at 60K, and the ILO Unemployment Rate reported at 4.1%. Average Weekly Earnings for the tri-monthly period ending in December increased 4.3% annualized, and Average Weekly Earnings Excluding Bonuses rose 3.7% annualized. Economists predicted a rise of 3.8% and 3.6%. Forex traders can compare this to Average Weekly Earnings for November, which expanded 4.2%, and Average Weekly Earnings Excluding Bonuses, which increased 3.8%.
The US PPI for January is predicted to increase 0.5% monthly and 9.1% annualized. Forex traders can compare this to the US PPI for December, which rose 0.3% monthly and 9.7% annualized. The US Core PPI for January is predicted to expand 0.5% monthly and 7.9% annualized. Forex traders can compare this to the US Core PPI for December, which increased 0.5% monthly and 8.3% annualized.
The US Empire Manufacturing Index for February is predicted at 12.15. Forex traders can compare this to the US Empire Manufacturing Index for January, reported at -0.70.
The forecast for the GBP/USD remains bullish after this currency corrected from its most recent intra-day high into its gradually ascending Ichimoku Kinko Hyo Cloud. Short-term volatility may increase after the Tenkan-sen moved above the Kijun-sen, but both flatlined. Adding to the bullish outlook is the CCI, which accelerated from extreme oversold conditions before retreating but maintained its position in positive territory with plenty of upside potential. Can bulls pressure the GBP/USD 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 1.3495 to 1.3565 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.3530
- Take Profit Zone: 1.3690 – 1.3750
- Stop Loss Level: 1.3475
Should price action for the GBP/USD breakdown below 1.3495, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.3475
- Take Profit Zone: 1.3355 – 1.3390
- Stop Loss Level: 1.3495
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