Source: PaxForex Premium Analytics Portal, Fundamental Insight
The UK CBI Distributive Sales Survey for January is predicted at -30. Forex traders can compare this to the UK CBI Distributive Sales Survey for December, reported at -32.
US Final Building Permits for December are predicted at 1.495M permits. Forex traders can compare this to US Final Building Permits for November, reported at 1.467M permits.
US Preliminary Durable Goods Orders for December are predicted to increase by 1.1% monthly, and Durables Excluding Transportation by 0.2% monthly. Forex traders can compare this to US Durable Goods Orders for November, which rose by 5.4% monthly, and Durables Excluding Transportation, which increased by 0.5% monthly. Capital Goods Orders Non-Defense Excluding Aircraft for December are predicted to expand by 0.1% monthly. Forex traders can compare this to Capital Goods Orders Non-Defense Excluding Aircraft for November, which rose by 0.8% monthly.
US Initial Jobless Claims for the week of January 20th are predicted at 200K, and US Continuing Claims for the week of January 13th at 1,828K. Forex traders can compare this to US Initial Jobless Claims for the week of January 13th, reported at 187K, and US Continuing Claims for the week of January 6th, reported at 1,806K.
The US Advanced Goods Trade Balance for December is predicted at -$88.70B. Forex traders can compare this to the US Advanced Goods Trade Balance for November, reported at -$90.27B.
The Advanced US GDP for the fourth quarter is predicted to expand 2.0% quarterly. Forex traders can compare this to third quarter GDP, which rose 4.9% quarterly. The GDP Price Index for the fourth quarter is predicted to accelerate by 2.3% quarterly and the Core PCE by 2.0%. Forex traders can compare this to the third quarter GDP Price Index, which rose 3.3% quarterly, and the Core PCE by 2.0% annualized.
US Preliminary Wholesale Inventories for December are predicted to drop by 0.2% monthly. Forex traders can compare this to US Wholesale Inventories for November, which contracted by 0.2% monthly.
The forecast for the GBP/USD remains bullish after five weeks of consolidation. The gradually upward-shifting Ichimoku Kinko Hyo Cloud provides upside momentum, but short-term volatility could rise following a bearish crossover between the Kijun-sen and the Tenkan-sen. Traders should also monitor the CCI following a double breakout from extreme oversold territory and above zero. This technical indicator has plenty of upside potential and can lead this currency pair to fresh 2024 highs. Can bulls maintain control over the GBP/USD and pressure price action 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 1.2685 to 1.2735 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.2710
- Take Profit Zone: 1.2870 – 1.3000
- Stop Loss Level: 1.2610
Should price action for the GBP/USD breakdown below 1.2685, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.2660
- Take Profit Zone: 1.2500 – 1.2560
- Stop Loss Level: 1.2685
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