Source: PaxForex Premium Analytics Portal, Fundamental Insight
The UK Halifax House Price Index for May increased by 0.5% monthly and 1.5% tri-monthly annualized. Economists predicted a rise of 0.3% monthly and 1.2% tri-monthly annualized. Forex traders can compare this to the UK Halifax House Price Index for April, which increased by 0.1% monthly and 1.1% tri-monthly annualized.
The US NFP Report for May is predicted to show 182K job additions and an unemployment rate of 3.9%. Forex traders can compare this to the US NFP Report for April, which showed 175K job additions and an unemployment rate of 3.9%. Private Payrolls for May are predicted to show 170K job additions and Manufacturing Payrolls 5K job gains. Forex traders can compare this to Private Payrolls for April, which showed 167K job additions, and Manufacturing Payrolls, which showed 8K job additions. The Average Work Week for May is predicted at 34.3 hours. Forex traders can compare this to the Average Work Week for April, reported at 34.3 hours. Average Hourly Earnings for May are predicted to increase by 0.3% monthly and 3.9% annualized. Forex traders can compare this to Average Hourly Earnings for April, which rose 0.2% monthly and 3.9% annualized.
US Final Wholesale Inventories for April are predicted to increase by 0.2% monthly. Forex traders can compare this to US Wholesale Inventories for March, which decreased 0.4% monthly.
US Consumer Credit for April is predicted at $9.30B. Forex traders can compare this to US Consumer Credit for March, reported at $6.27B.
The forecast for the GBP/USD turned cautiously bearish in the short term, with this currency pair at its horizontal resistance area. The Tenkan-sen and the Kijun-sen flatlined, confirming the absence of short-term bullish momentum. Volatility could increase following a bullish crossover in the Ichimoku Kinko Hyo Cloud, with the Senkou Span A moving higher and the Senkou Span B flat. Traders should also monitor the CCI following a breakdown from extreme overbought territory. A negative divergence has formed before the breakdown, and this technical indicator has plenty of downside potential. Can bears regain control over the GBP/USD and 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 1.2760 to 1.2810 zone, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.2785
- Take Profit Zone: 1.2540 – 1.2595
- Stop Loss Level: 1.2860
Should price action for the GBP/USD break out above 1.2810, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.2860
- Take Profit Zone: 1.2920 – 1.2980
- Stop Loss Level: 1.2810
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