Source: PaxForex Premium Analytics Portal, Fundamental Insight
The UK GDP for January increased by 0.3% monthly, came in flat at 0.0% for the three-month-over-three-month period ending in January, and was flat at 0.0% annualized. Economists predicted an increase of 0.1%, 0.0%, and a decrease of 0.1%. Forex traders can compare this to the UK GDP for December, which decreased by 0.5%, was flat at 0.0% for the three-month-over-three-month period ending in December, and contracted by 0.1% annualized.
UK Construction Output Seasonally Adjusted for January dropped by 1.7% monthly and increased by 0.6% annualized. Economists predicted a contraction of 0.1% and an expansion of 2.4%. Forex traders can compare this to UK Construction Output Seasonally Adjusted for December, which dropped 0.5% monthly and rose 3.7% annualized.
UK Industrial Production for January decreased by 0.3% monthly and by 4.3% annualized. Economists predicted a drop of 0.1% and 4.0%. Forex traders can compare this to UK Industrial Production for December, which rose by 0.3% monthly and dropped by 4.0% annualized. UK Manufacturing Production for January contracted by 0.4% monthly and 5.2% annualized. Economists predicted a decrease of 0.1% and 5.0%. Forex traders can compare this to UK Manufacturing Production for December, which was flat at 0.0% monthly and plunged by 5.7% annualized.
The UK Visible Trade Balance for January came in at -£17.855B, and the UK Trade Balance Non-EU at -£7.808B. Forex traders can compare this to the UK Visible Trade Balance for December, reported at -£19.271B, and the UK Trade Balance Non-EU at -£7.484B.
The US NFP Report for February is predicted to show 205K job additions and an unemployment rate of 3.4%. Forex traders can compare this to the US NFP Report for January, which showed 517K job additions and an unemployment rate of 3.4%. Private Payrolls for February are predicted to show 210K job additions, and Manufacturing Payrolls 12K job additions. Forex traders can compare this to Private Payrolls for January, which showed 443K job additions, and Manufacturing Payrolls, which showed 19K job additions. The Average Work Week for February is predicted at 34.6 hours. Forex traders can compare this to the Average Work Week for January, reported at 34.7 hours. Average Hourly Earnings for February are predicted to increase by 0.3% monthly and 4.7% annualized. Forex traders can compare this to Average Hourly Earnings for January, which rose 0.3% monthly and 4.4% annualized.
The US Monthly Budget Statement for February is predicted at -$256.0B. Forex traders can compare this to the US Monthly Budget Statement for January, reported at -$39.0B.
The forecast for the GBP/USD is cautiously bullish after this currency bounced off its horizontal support area. The flat Tenkan-sen and the descending Kijun-sen suggest volatility ahead, while the downward shifting Ichimoku Kinko Hyo Cloud provides a medium-term ceiling. Traders should monitor the CCI following its breakout from extreme oversold conditions. A move above zero could grant bulls the upper hand. Can bulls overrun bears and push 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 1.1910 to 1.1975 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.1950
- Take Profit Zone: 1.2145 – 1.2195
- Stop Loss Level: 1.1840
Should price action for the GBP/USD breakdown below 1.1910, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.1840
- Take Profit Zone: 1.1685 – 1.1755
- Stop Loss Level: 1.1970
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