Source: PaxForex Premium Analytics Portal, Fundamental Insight
The UK Jobless Claims Change for May came in at -13.6K. Economists predicted a figure of -21.4K. Forex traders can compare this to the UK Jobless Claims Change for April, reported at -23.4K.
The UK Employment Change for the tri-monthly period ending in April came in at 250K, and the ILO Unemployment Rate at 3.8%. Economists predicted a reading of 150K and 4.0%. Forex traders can compare this to the UK Employment Change for March, reported at 182K, and the ILO Unemployment Rate, reported at 3.9%. Average Weekly Earnings for the tri-monthly period ending in April increased 6.5% annualized, and Average Weekly Earnings Excluding Bonuses rose 7.2% annualized. Economists predicted a rise of 6.1% and 6.9%. Forex traders can compare this to Average Weekly Earnings for March, which rose 6.1%, and to Average Weekly Earnings Excluding Bonuses, which increased 6.8%.
The US NFIB Small Business Optimism Index for May is predicted at 88.5. Forex traders can compare this to the NFIB Small Business Optimism Index for April, reported at 89.0.
The US CPI for May is predicted to increase by 0.2% monthly and by 4.1% annualized. Forex traders can compare this to the US CPI for April, which rose by 0.4% monthly and 4.9% annualized. The US Core CPI for May is predicted to expand by 0.4% monthly and 5.3% annualized. Forex traders can compare this to the US Core CPI for April, which rose by 0.4% monthly and 5.5% annualized.
US Real Earnings for May are predicted to increase by 0.1% monthly. Forex traders can compare this to US Real Earnings for April, which rose 0.1% monthly.
The forecast for the GBP/USD is bullish after the ascending Ichimoku Kinko Hyo Cloud halted the previous correction and guided this currency pair higher. The Senkou Span A and the Senkou Span B of the Ichimoku Kinko Hyo Cloud move higher, suggesting more upside potential. A pending bullish crossover of the ascending Tenkan-sen above the flat Kijun-sen could add the next upside catalyst to price action. Traders should also monitor the CCI in extreme overbought territory. sA false breakdown could add volatility, but if this technical indicator remains above zero, the uptrend prevails. Can bulls thwart bearish pressures and maintain control over the GBP/USD to push price action into its horizontal resistance area and a fresh 2023 high? 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 1.2495 to 1.2575 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.2555
- Take Profit Zone: 1.2680 – 1.2770
- Stop Loss Level: 1.2440
Should price action for the GBP/USD breakdown below 1.2495, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.2440
- Take Profit Zone: 1.2345 – 1.2375
- Stop Loss Level: 1.2495
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