Source: PaxForex Premium Analytics Portal, Fundamental Insight
UK Retail Sales for August increased by 0.8% monthly and by 2.8% annualized. Economists predicted an increase of 0.7% and 3.0%. Forex traders can compare this to UK Retail Sales for July, which increased by 3.7% monthly and by 1.4% annualized. UK Core Retail Sales for August increased by 0.6% monthly and by 4.3% annualized. Economists predicted an increase of 0.4% and 4.2%. Forex traders can compare this to UK Core Retail Sales for July, which increased by 2.1% monthly and by 3.1% annualized.
The US Current Account Balance for the second quarter is predicted at -$157.9B. Forex traders can compare this to the US Current Account Balance for the first quarter, reported at -$104.2B. Preliminary US Michigan Consumer Sentiment for September is predicted at 75.0. Forex traders can compare this to US Michigan Consumer Confidence for August, reported at 74.1. Preliminary Current Conditions for September are expected at 83.9, and Preliminary Expectations are predicted at 67.8. Forex traders can compare this to Current Conditions for August, reported at 82.9, and to Expectations, reported at 68.5. The US Leading Index for August is predicted to increase by 1.3% monthly. Forex traders can compare this to the US Leading Index for July, which increased by 1.4% monthly.
The forecast for the GBP/USD remains bullish. Earlier this morning, the UK released better-than-expected retail sales data for August, while the US labor continues to show weakness. Initial jobless claims increased and are at levels indicating a troubled economy. Price action advanced through the Ichimoku Kinko Hyo Cloud and now faces its descending Tenkan-sen. Volatility could increase while this currency pair is expected to advance into its next horizontal resistance area. Will bulls finish the trading week on a strong note? 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 1.2925 to 1.3010 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.2965
- Take Profit Zone: 1.3355 – 1.3480
- Stop Loss Level: 1.2885
Should price action for the GBP/USD breakdown below 1.2925 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.2885
- Take Profit Zone: 1.2670 – 1.2760
- Stop Loss Level: 1.2925
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio.
