Source: PaxForex Premium Analytics Portal, Fundamental Insight

The UK Employment Change for the tri-monthly period ending in April is predicted at 150K, and the ILO Unemployment Rate is predicted at 4.7%. Forex traders can compare this to the UK Employment Change for March, reported at 84K, and to the ILO Unemployment Rate, reported at 4.7%. Average Weekly Earnings for the tri-monthly period ending in April are predicted to increase by 4.9% annualized, and Average Weekly Earnings Excluding Bonuses are predicted to increase by 5.3% annualized. Forex traders can compare this to Average Weekly Earnings for March, which increased by 4.0%, and to Average Weekly Earnings Excluding Bonuses, which increased by 4.6%.

The US PPI for May is predicted to increase by 0.6% monthly and by 6.3% annualized. Forex traders can compare this to the US PPI for April, which increased by 0.6% monthly and 6.2% annualized. The US Core PPI for May is predicted to increase by 0.5% monthly and by 4.8% annualized. Forex traders can compare this to the US Core PPI for April, which increased by 0.7% monthly and by 4.1% annualized.

US Advanced Retail Sales for May are predicted to decrease by 0.7% monthly, and Retail Sales Less Autos are predicted to increase by 0.2% monthly. Forex traders can compare this to US Advanced Retail Sales for April, which was reported flat at 0.0% monthly, and to Retail Sales Less Autos, which decreased by 0.8% monthly. Retail Sales Control Group for May are predicted to decrease by 0.6% monthly. Forex traders can compare this to Retail Sales Control Group for April, which decreased by 1.5% monthly. The US Empire Manufacturing Index for June is predicted at 22.6. Forex traders can compare this to the US Empire Manufacturing Index for May, reported at 24.3. 

US Industrial Production for May is predicted to increase by 0.6% monthly, and Manufacturing Production is predicted to increase by 0.5% monthly. Forex traders can compare this to US Industrial Production for April, which increased by 0.5% monthly, and to Manufacturing Production, which increased by 0.2% monthly. Capacity Utilization for May is predicted at 75.1%. Forex traders can compare this to Capacity Utilization for April, reported at 74.6%. US Business Inventories for April are predicted to decrease by 0.1% monthly. Forex traders can compare this to US Business Inventories for March, which increased by 0.3% monthly. The US NAHB Housing Market Index for June is predicted at 83. Forex traders can compare this to the US NAHB Housing Market Index for May, reported at 83.

The forecast for the GBP/USD remains bullish after pausing its advance with a sideways trend. It allowed bearish pressured to deflate and bulls to regain their strength. With the Kijun-sen advancing, it is approaching a bullish crossover above its flat Tenkan-sen. Increasing bullish pressures are the shallow ascending Ichimoku Kinko Hyo Cloud, and the CCI is advancing inside extreme oversold territory. Can bulls pressure the GBP/USD into its next 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 breakout above the 1.4070 to 1.4135 zone, PaxForex recommends the following trade set-up:

• Timeframe: D1           
• Recommendation: Long Position
• Entry Level: Long Position @ 1.4110
• Take Profit Zone: 1.4315 – 1.4380
• Stop Loss Level: 1.4035

Should price action for the GBP/USD breakdown below 1.4070, PaxForex recommends the following trade set-up:

• Timeframe: D1           
• Recommendation: Short Position
• Entry Level: Short Position @ 1.4035
• Take Profit Zone: 1.3915 – 1.3950
• Stop Loss Level: 1.4070

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