Source: PaxForex Premium Analytics Portal, Fundamental Insight
The UK Jobless Claims Change for August is predicted at -13.2K. Forex traders can compare this to the UK Jobless Claims Change for July, reported at -10.5K.
The UK Employment Change for the tri-monthly period ending in July is predicted at 128K, and the ILO Unemployment Rate is predicted at 3.8%. Forex traders can compare this to the UK Employment Change for June, which came in 160K, and to the ILO Unemployment Rate, reported at 3.8%. Average Weekly Earnings for the tri-monthly period ending in July are predicted to increase by 5.4% annualized, and Average Weekly Earnings Excluding Bonuses, by 5.0% annualized. Forex traders can compare this to Average Weekly Earnings for June, which increased by 5.1%, and Average Weekly Earnings Excluding Bonuses, which increased by 4.7%.
The US NFIB Small Business Optimism Index for August is predicted at 90.1. Forex traders can compare this to the NFIB Small Business Optimism Index for July, reported at 89.9.
The US CPI for August is predicted to decrease 0.1% monthly and increase 8.1% annualized. Forex traders can compare this to the US CPI for July, which came in flat at 0.0% monthly and rose 8.5% annualized. The US Core CPI for August is predicted to expand 0.3% monthly and 6.1% annualized. Forex traders can compare this to the US Core CPI for July, which rose 0.3% monthly and 5.9% annualized.
The US Monthly Budget Statement for August is predicted at -$213.5B. Forex traders can compare this to the US Monthly Budget Statement for July, reported at -$211.0B.
The forecast for the GBP/USD is cautiously optimistic. Traders should expect volatility to increase over the next trading sessions as bulls and bears wrestle for control over price action and ahead of the CPI report out of the US. Following the breakout from its horizontal support area, the Kijun-sen and the Tenkan-sen flatlined, while bullish momentum remains strong. The Ichimoku Kinko Hyo Cloud maintains its narrow stance and downside trend, posing the next resistance level once price action crashes into it. Traders should monitor the CCI after it accelerated out of extreme oversold territory followed by a breakout above zero. It has more upside potential but could retreat towards the centerline before attempting to push into extreme overbought territory. Can bulls overpower bearish attempts and pressure the GBP/USD 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 1.1645 to 1.1740 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.1685
- Take Profit Zone: 1.1975 – 1.2060
- Stop Loss Level: 1.1555
Should price action for the GBP/USD breakdown below 1.1645, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.1555
- Take Profit Zone: 1.1400 – 1.1445
- Stop Loss Level: 1.1645
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio.
