The UK Halifax House Price Index for April decreased by 0.6% monthly. Economists predicted a decrease of 0.7% monthly. Forex traders can compare this to the UK Halifax House Price Index for March, which decreased by 0.3% monthly. The Bank of England kept interest rates at 0.10% and maintained the Asset Purchase Target to £625B. 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 increased the Asset Purchase Target to £645B.

US Initial Jobless Claims for the week of May 2nd are predicted at 3,000K, and US Continuing Claims for the week of April 25th are predicted at 19,905K. Forex traders can compare this to US Initial Jobless Claims for the week of April 25th, which were reported at 3,839K and to US Continuing Claims for the week of April 18th, which were reported at 17,992K.

Preliminary US Non-Farm Productivity for the first quarter is predicted to decrease by 5.5% quarterly, and Unit Labor Costs are predicted to increase by 4.0% quarterly. Forex traders can compare this to US Non-Farm Productivity for the fourth quarter, which increased by 1.2% quarterly and to Unit Labor Costs, which increased by 0.9% quarterly. US Consumer Credit for March is predicted at $15.00B. Forex traders can compare this to US Consumer Credit for February, which was reported at $22.33B.

The GBP/USD forecast continues to be bullish. Earlier this week the final UK services and composite PMI data for April were revised moderately higher. The Bank of England kept its Asset Purchase Target unchanged at £645B. Yesterday’s ADP data painted a depressive picture for tomorrow’s NFP report. Price action is hovering above the Ichimoku Kinko Hyo cloud from where bulls are likely to launch their next stampede into the horizontal resistance area. Will today’s US initial jobless claims provide the catalyst for a rally? 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 1.2300 to 1.2400 zone the following trade set-up is recommended:

• Timeframe: D1
• Recommendation: Long Position
• Entry Level: Long Position @ 1.2375
• Take Profit Zone: 1.3050 – 1.3200
• Stop Loss Level: 1.2250

Should price action for the GBP/USD breakdown below 1.2300 the following trade set-up is recommended:

• Timeframe: D1
• Recommendation: Short Position
• Entry Level: Short Position @ 1.2250
• Take Profit Zone: 1.2100 – 1.2165
• Stop Loss Level: 1.2300

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