Source: PaxForex Premium Analytics Portal, Fundamental Insight
UK Construction Output Seasonally Adjusted for January increased by 1.1% monthly and 0.7% annualized. Economists predicted a flat reading of 0.0% and a contraction of 0.5%. Forex traders can compare this to UK Construction Output Seasonally Adjusted for December, which dropped by 0.5% monthly and 3.2% annualized.
The UK GDP for January increased by 0.2% monthly, decreased by 0.1% for the three-month-over-three-month period ending in January, and contracted by 0.3% annualized. Economists predicted a rise of 0.2%, a drop of 0.1%, and a decrease of 0.3%. Forex traders can compare this to the UK GDP for December, which contracted by 0.1%, decreased by 0.3% for the three-month-over-three-month period ending in December, and was flat at 0.0% annualized.
UK Industrial Production for January decreased by 0.2% monthly and rose by 0.5% annualized. Economists predicted a fat reading of 0.0% and an increase of 0.7%. Forex traders can compare this to UK Industrial Production for December, which expanded by 0.6% monthly and 0.6% annualized. UK Manufacturing Production for January was flat at 0.0% monthly and expanded by 2.0% annualized. Economists predicted a flat reading of 0.0% and a rise of 2.0%. Forex traders can compare this to UK Manufacturing Production for December, which accelerated by 0.8% monthly and 2.3% annualized.
The UK Visible Trade Balance for January came in at -£14.520B, and the UK Trade Balance Non-EU at -£3.420B. Forex traders can compare this to the UK Visible Trade Balance for December, reported at -£13.990B, and the UK Trade Balance Non-EU at -£3.320B.
US Crude Oil Inventories Change for the week ending March 8th are predicted at 1.338M. Traders can compare this to US Crude Oil Inventories Change for the week ending March 1st, reported at 1.367M. US Gasoline Inventories Change for the week ending March 8th are predicted at -1.900M, and US Distillate Stocks Change at -0.150M. Traders can compare this to US Gasoline Inventories Change for the week ending March 1st, reported at -4.460M, and US Distillate Stocks Change at -4.131M.
The forecast for the GBP/USD turned cautiously bullish, with the upward-shifting Ichimoku Kinko Hyo Cloud providing upward pressure. The ascending Kijun-sen adds bullishness, but the Tenkan-sen has flatlined, suggesting a potential volatility spike ahead. Traders should also monitor the CCI following its breakdown from extreme overbought territory. This technical indicator remains in positive territory and could lead price action higher. Can bulls maintain control over the GBP/USD and push for higher highs? 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 1.2760 to 1.2800 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.2785
- Take Profit Zone: 1.2680 – 1.2895
- Stop Loss Level: 1.2745
Should price action for the GBP/USD breakdown below 1.2760, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.2745
- Take Profit Zone: 1.2660 – 1.2700
- Stop Loss Level: 1.2760
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