Source: PaxForex Premium Analytics Portal, Fundamental Insight
British Pound traders will get a speech by Bank of England Monetary Policy Committee (MPC) Member Pill, followed by the Bank of England Monetary Policy Committee Treasury Hearings and the Bank of England Quarterly Bulletin. All three events could move the British Pound as Forex traders await clues on future monetary policy changes. The UK economy continues to underperform as inflation remains stubbornly high, extending the cost of living crisis.
US Initial Jobless Claims for the week of May 13th are predicted at 254K, and US Continuing Claims for the week of May 6th at 1,818K. Forex traders can compare this to US Initial Jobless Claims for the week of May 6th, reported at 264K, and US Continuing Claims for the week of April 29th at 1,813K.
The Philadelphia Fed Manufacturing Index for May is predicted at -19.8. Forex traders can compare this to the Philadelphia Fed Manufacturing Index for April, reported at -31.3. The Philadelphia Fed Business Conditions Index for May is predicted at -11.3, the Philadelphia Fed Employment Index at -5.2, the Philadelphia Fed New Orders Index at -25.7, the Philadelphia Fed Prices Paid Index at 8.10, and the Philadelphia Fed CAPEX Index at 2.30. Forex traders can compare this to the Philadelphia Fed Business Conditions Index for April, reported at -1.5, the Philadelphia Fed Employment Index at -0.2, the Philadelphia Fed New Orders Index at -22.7, the Philadelphia Fed Prices Paid Index at 8.20, and the Philadelphia Fed CAPEX Index at -5.40.
US Existing Home Sales for April are predicted to increase by 0.1% monthly to 4.30M. Forex traders can compare this to US Existing Home Sales for March, which decreased by 2.4% monthly to 4.44M.
The US Leading Index for April is predicted to drop 0.6% monthly. Forex traders can compare this to the US Leading Index for March, which plunged 1.2% monthly.
US Natural Gas Inventories for the week ending May 12th are predicted at 108B cubic feet. Traders can compare this to US Natural Gas Inventories for the week ending May 5th, reported at 78B cubic feet.
The forecast for the GBP/USD remains bullish after this currency pair was rejected by the lower band of its horizontal resistance area, but the ascending Ichimoku Kinko Hyo Cloud provides enough bullish momentum to drive price action higher. Volatility could rise as the Kijun-sen and the Tenkan-sen flatlined. Traders should also monitor the CCI following its double breakdown from extreme overbought territory and below zero. This technical indicator stabilized near extreme oversold conditions, and a reversal could provide bulls the upper hand for a retracement of the sell-off. Can bulls regain control over the GBP/USD and force price action into its horizontal resistance area and fresh 2023 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 1.2420 to 1.2515 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.2455
- Take Profit Zone: 1.2680 – 1.2770
- Stop Loss Level: 1.2390
Should price action for the GBP/USD breakdown below 1.2420, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.2390
- Take Profit Zone: 1.2275 – 1.2300
- Stop Loss Level: 1.2420
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio.
