Source: PaxForex Premium Analytics Portal, Fundamental Insight

The Bank of England is predicted to keep interest rates at 0.10%, and the Asset Purchase Target at £875B. Forex traders can compare this to the previous Bank of England meeting where the UK central bank decided to keep interest rates at 0.10% and kept the Asset Purchase Target at £875B. The Final UK Markit/CIPS Services PMI for April is predicted at 60.1, and the Final UK Markit/CIPS Composite PMI is predicted at 60.0. Forex traders can compare this to the UK Markit/CIPS Services PMI for March, reported at 56.3, and to the UK Markit/CIPS Composite PMI, reported at 56.4.

US Initial Jobless Claims for the week of May 1st are predicted at 540K, and US Continuing Claims for the week of April 24th are predicted at 3,620K. Forex traders can compare this to US Initial Jobless Claims for the week of April 24th, reported at 553K, and to US Continuing Claims for the week of April 17th, reported at 3,660K. Preliminary US Non-Farm Productivity for the first quarter is predicted to increase by 4.3% quarterly, and Unit Labor Costs are predicted to decrease by 0.8% quarterly. Forex traders can compare this to US Non-Farm Productivity for the fourth quarter, which decreased by 4.2% quarterly, and to Unit Labor Costs, which increased by 6.0% quarterly.

The forecast for the GBP/USD remains bullish after pushing above its ascending Ichimoku Kinko Hyo Cloud. Softer US economic data, including the labor market, and rising inflationary pressures, add to bearish developments for the US Dollar. While the Kijun-sen and the Tenkan-sen trend sideways, traders should follow suit and remain patient amid a likely increase in volatility before the next push higher. The CCI retreated from extreme overbought territory and may drift lower before offering trades a strong buy signal. Can bulls pressure the GBP/USD into its next 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 1.3840 to 1.3960 zone, PaxForex recommends the following trade set-up:

• Timeframe: D1           
• Recommendation: Long Position
• Entry Level: Long Position @ 1.3900
• Take Profit Zone: 1.4180 – 1.4225
• Stop Loss Level: 1.3800

Should price action for the GBP/USD breakdown below 1.3840, PaxForex recommends the following trade set-up:

• Timeframe: D1           
• Recommendation: Short Position
• Entry Level: Short Position @ 1.3800
• Take Profit Zone: 1.3670– 1.3745
• Stop Loss Level: 1.3840

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