Source: PaxForex Premium Analytics Portal, Fundamental Insight
The UK GDP for September increased by 0.2% monthly, was flat at 0.0% for the three-month-over-three-month period ending in September, and rose by 0.6% annualized. Economists predicted a flat reading of 0.0%, a decrease of 0.1%, and an expansion of 0.5%. Forex traders can compare this to the UK GDP for August, which rose by 0.1%, accelerated by 0.3% for the three-month-over-three-month period ending in August, and increased by 0.6% annualized.
UK Business Investment for the third quarter dropped by 4.2% quarterly and rose by 2.8% annualized. Forex traders can compare this to UK Business Investment for the second quarter, which surged by 4.1% quarterly and surged 9.2% annualized.
UK Construction Output Seasonally Adjusted for September increased by 0.4% monthly and 2.8% annualized. Economists predicted a contraction of 0.5% and an expansion of 2.7%. Forex traders can compare this to UK Construction Output Seasonally Adjusted for August, which dropped by 0.8% monthly and rose 1.8% annualized.
UK Industrial Production for September came in flat at 0.7% monthly and rose by 1.5% annualized. Economists predicted a rise of 0.1% and 1.1%. Forex traders can compare this to UK Industrial Production for August, which decreased by 0.5% monthly and accelerated by 1.5% annualized. UK Manufacturing Production for September expanded by 0.1% monthly and 3.0% annualized. Economists predicted an increase of 0.3% and 3.1%. Forex traders can compare this to UK Manufacturing Production for August, which dropped by 0.7% monthly and rose 3.0% annualized.
The UK Visible Trade Balance for September came in at -£14.290B, and the UK Trade Balance Non-EU at -£4.450B. Forex traders can compare this to the UK Visible Trade Balance for August, reported at -£15.520B, and the UK Trade Balance Non-EU at -£4.830B.
Preliminary US Michigan Consumer Sentiment for November is predicted at 63.7. Forex traders can compare this to US Michigan Consumer Confidence for October, reported at 63.8. Preliminary Current Conditions for November are expected at 69.5, and Preliminary Expectations at 59.5. Forex traders can compare this to Current Conditions for October, reported at 70.6, and Expectations at 59.3.
The forecast for the GBP/USD is cautiously bullish after this currency pair corrected into the top range of its horizontal support area. The Ichimoku Kinko Hyo Cloud, Kijun-sen, and Tenkan-sen all flatlined, suggesting a standoff between bulls and bears. Traders should also monitor the CCI after setting a higher high in extreme overbought territory, followed by a breakdown below 100. This technical indicator may dip below zero before reversing and has plenty of upside potential. Can bulls regain control over the GBP/USD and force price action 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 1.2185 to 1.2250 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.2225
- Take Profit Zone: 1.2425 – 1.2515
- Stop Loss Level: 1.2135
Should price action for the GBP/USD breakdown below 1.2185, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.2135
- Take Profit Zone: 1.2035 – 1.2070
- Stop Loss Level: 1.2185
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