Source: PaxForex Premium Analytics Portal, Fundamental Insight
The UK CPI for February increased by 1.1% monthly and 10.4% annualized. Economists predicted a rise of 0.6% and 9.9%. Forex traders can compare this to the UK CPI for January, which decreased by 0.6% monthly and surged by 10.1% annualized. The UK Core CPI for February expanded by 1.2% monthly and 6.2% annualized. Economists predicted an increase of 0.8% and 5.7%. Forex traders can compare this to the UK CPI for January, which contracted by 0.9% monthly and rose by 5.8% annualized.
The UK PPI Input for February decreased by 0.1% monthly and surged by 12.7% annualized. Economists predicted an increase of 0.2% and 12.0%. Forex traders can compare this to the UK PPI Input for January, which accelerated by 0.4% monthly and 14.7% annualized. The UK PPI Output for February contracted by 0.3% monthly and expanded by 12.1% annualized. Economists predicted a rise of 0.2% and 12.4%. Forex traders can compare this to the UK PPI Output for January, which surged by 0.5% monthly and 13.5% annualized. The UK PPI Core Output for February dropped by 0.2% monthly and rose by 10.4% annualized. Forex traders can compare this to the UK PPI Core Output for January, which expanded by 0.7% monthly and by 11.2% annualized.
The UK RPI for February surged by 1.2% monthly and 13.8% annualized. Economists predicted an increase of 0.6% and 13.3%. Forex traders can compare this to the UK RPI for January, which came in flat at 0.0% monthly and expanded by 13.4% annualized. The UK Core RPI for February accelerated by 1.1% monthly and 10.4% annualized. Forex traders can compare this to the UK Core RPI for January, which decreased by 0.2% monthly and surged by 11.2% annualized.
The South African CPI for February is predicted to increase by 0.6% monthly and 6.9% annualized. Forex traders can compare this to the South African CPI for January, which contracted by 0.1% monthly and accelerated by 6.9% annualized. The Core CPI for February is predicted to expand by 0.6% monthly and 5.0% annualized. Forex traders can compare this to Core CPI for January, which increased by 0.2% monthly and 4.9% annualized.
The forecast for the GBP/ZAR turned bearish in the short term following a 2,500+ pips rally. The Kijun-sen, the Tenkan-sen, and the Ichimoku Kinko Hyo Cloud flatlined, confirming the absence of short-term upside pressures. Adding to the negative outlook are the last two D1 candlestick formations, which are bearish. Traders should also monitor the CCI in extreme overbought territory as this technical indicator declines. A breakdown could accelerate downside pressures. Can bears regain control of the GBP/ZAR and force price action into its horizontal support area? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.
Should price action for the GBP/ZAR remain inside the or breakdown below the 22.5650 to 22.7300 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 22.6150
- Take Profit Zone: 21.8000 – 21.9725
- Stop Loss Level: 22.8000
Should price action for the GBP/ZAR breakout above 22.7300, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 22.8000
- Take Profit Zone: 23.1000 – 23.2375
- Stop Loss Level: 22.7300
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