Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Final UK S&P Global/CIPS Services PMI for October is predicted at 51.8, and the Final UK S&P Global/CIPS Composite PMI at 51.7. Forex traders can compare this to the UK S&P Global/CIPS Services PMI for September, reported at 52.4, and the UK S&P Global/CIPS Composite PMI at 52.6.
The US Trade Balance for September is predicted at -$83.80B. Forex traders can compare this to the US Trade Balance for August, reported at -$70.40B.
The Final US S&P Global Composite PMI for October is predicted at 54.3, and the Final US S&P Global Services PMI at 55.3. Forex traders can compare this to the US S&P Global Composite PMI for September, reported at 54.0, and the US S&P Global Services PMI at 55.2.
The US ISM Non-Manufacturing PMI for October is predicted at 53.8. Forex traders can compare this to the US ISM Non-Manufacturing PMI for September, reported at 54.9. Traders should focus on the Business Activity, Employment, New Orders, and Prices sub-components.
The forecast for the GBP/USD turned cautiously bullish after this currency pair corrected into its horizontal support area. The Tenkan-sen has flatlined, and price action trades above it, but the Kijun-sen is moving lower, suggesting more short-term volatility. The Senkou Span A of the Ichimoku Kinko Hyo Cloud completed a bearish crossover below the ascending Senkou Span B, which could reverse shortly due to the rising bullish momentum. Traders should also monitor the CCI after a positive divergence in extreme oversold territory led to a breakout. This technical indicator has plenty of upside momentum and is nearing a crossover above zero, which could spark the next leg higher. Can bulls regain control over the GBP/USD and push 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 1.2945 to 1.3000 zone, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.2975
- Take Profit Zone: 1.3235 – 1.3305
- Stop Loss Level: 1.2885
Should price action for the GBP/USD break down below 1.2945, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.2885
- Take Profit Zone: 1.2760 – 1.2800
- Stop Loss Level: 1.2945
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