Source: PaxForex Premium Analytics Portal, Fundamental Insight
The UK CPI for April increased by 1.2% monthly and 8.7% annualized. Economists predicted a rise of 0.8% and 8.3%. Forex traders can compare this to the UK CPI for March, which rose by 0.8% monthly and 10.1% annualized. The UK Core CPI for April expanded by 1.3% monthly and 6.8% annualized. Economists predicted an increase of 0.8% and 6.2%. Forex traders can compare this to the UK CPI for March, which rose by 0.9% monthly and 6.2% annualized.
The UK PPI Input for April decreased by 0.3% monthly and increased by 3.9% annualized. Economists predicted an increase of 0.1% and 7.0%. Forex traders can compare this to the UK PPI Input for March, which accelerated by 0.2% monthly and 7.3% annualized. The UK PPI Output for April was flat at 0.0% monthly and expanded by 5.4% annualized. Economists predicted a drop of 0.1% and an increase of 8.6%. Forex traders can compare this to the UK PPI Output for March, which was flat at 0.0% monthly and surged by 8.5% annualized. The UK PPI Core Output for April was flat at 0.0% monthly and rose by 6.0% annualized. Economists predicted an increase of 0.1% and 7.3%. Forex traders can compare this to the UK PPI Core Output for March, which expanded by 0.3% monthly and by 8.3% annualized.
The UK RPI for April surged by 1.5% monthly and 11.4% annualized. Economists predicted an increase of 1.3% and 11.2%. Forex traders can compare this to the UK RPI for March, which expanded by 0.7% monthly and 13.5% annualized. The UK Core RPI for April accelerated by 1.4% monthly and 10.4% annualized. Economists predicted an increase of 2.1% and 11.7%. Forex traders can compare this to the UK Core RPI for March, which rose by 0.7% monthly and surged by 12.6% annualized.
UK CBI Industrial Industrial Trends Orders for May are predicted at -19. Forex traders can compare this to CBI Industrial Trends Orders for April, reported at -20.
The South African CPI for April is predicted to increase by 0.5% monthly and 7.0% annualized. Forex traders can compare this to the South African CPI for March, which rose by 1.0% monthly and 7.1% annualized. The Core CPI for April is predicted to expand by 0.5% monthly and 5.3% annualized. Forex traders can compare this to Core CPI for March, which increased by 0.8% monthly and 5.2% annualized.
The forecast for the GBP/ZAR remains cautiously bullish as this currency pair formed a flag formation, which is a continuation pattern. Volatility could increase with the Kijun-sen and the Tenkan-sen flat, but the ascending Ichimoku Kinko Hyo Cloud continues to provide upside pressure. Traders should also monitor the CCI following its breakdown from extreme overbought territory. It could use the zero level to bounce higher, giving bulls the upper hand. Cann bulls repel bears and push the GBP/ZAR into its horizontal resistance area and fresh multi-year highs? 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 breakout above the 23.7740 to 23.9440 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 23.8800
- Take Profit Zone: 24.4480 – 24.6925
- Stop Loss Level: 23.6700
Should price action for the GBP/ZAR breakdown below 23.7740, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 23.6700
- Take Profit Zone: 23.2900 – 23.4090
- Stop Loss Level: 23.7740
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