Source: PaxForex Premium Analytics Portal, Fundamental Insight
The UK Markit/CIPS Services PMI for August is predicted at 55.5, and the UK Markit/CIPS Composite PMI is predicted at 55.3. Forex traders can compare this to the UK Markit/CIPS Services PMI for July, reported at 59.6, and the UK Markit/CIPS Composite PMI reported at 59.2.
The US NFP Report for August is predicted to show 750K job additions and an unemployment rate of 5.2%. Forex traders can compare this to the US NFP Report for July, which showed 943K job additions and an unemployment rate of 5.4%. Private Payrolls for August are predicted to show 665K job additions and Manufacturing Payrolls 25K job additions. Forex traders can compare this to Private Payrolls for July, which showed 703K job additions, and Manufacturing Payrolls, which showed 27K job additions. The Average Work Week for August is predicted at 34.8 hours. Forex traders can compare this to the Average Work Week for July, reported at 34.8 hours. Average Hourly Earnings for August are predicted to increase 0.3% monthly and 4.0% annualized. Forex traders can compare this to Average Hourly Earnings for July, which increased 0.4% monthly and 4.0% annualized.
The US Final Markit Services PMI for August is predicted at 55.2, and the US Final Markit Composite PMI is predicted at 55.4. Forex traders can compare this to the US Markit Services PMI for July, reported at 59.9, and the US Markit Composite PMI reported at 59.9. The US ISM Non-Manufacturing PMI for August is predicted at 61.5, and the ISM Non-Manufacturing Business Activity Index at 62.8. Forex traders can compare this to the US ISM Non-Manufacturing PMI for July, reported at 64.1, and the ISM Non-Manufacturing Business Activity Index reported at 67.0.
The forecast for the GBP/USD remains bullish as this currency pair is in the middle of recovery following its sell-off. Adding to the positive outlook is the ascending Tenkan-sen, expected to cross above the flat Kijun-sen, adding buying pressure. Volatility may increase until the descending Ichimoku Kinko Hyo Cloud stabilizes, but the bullish chart pattern is intact. The CCI moved into extreme overbought territory, and waiting for a pullback below 100 before adding new buy orders makes sense. Will bulls force the GBP/USD farther to the upside? 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 1.3795 to 1.3880 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.3835
- Take Profit Zone: 1.4135 – 1.4200
- Stop Loss Level: 1.3720
Should price action for the GBP/USD breakdown below 1.3795, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.3720
- Take Profit Zone: 1.3570 – 1.3620
- Stop Loss Level: 1.3795
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