Source: PaxForex Premium Analytics Portal, Fundamental Insight
The UK CPI for February is predicted to increase 0.6% monthly and 5.9% annualized. Forex traders can compare this to the UK CPI for January, which decreased 0.1% monthly and rose 5.5% annualized. The Core CPI for February is predicted to expand 0.5 monthly and 5.0% annualized. Forex traders can compare this to Core CPI for January, which dropped 0.4% monthly and increased 4.4% annualized.
The UK PPI Input for February is predicted to increase 1.2% monthly and 13.9% annualized. Forex traders can compare this to the UK PPI Input for January, which rose 0.9% monthly and 13.6% annualized. The UK PPI Output for February is predicted to expand 0.9% monthly and 10.1% annualized. Forex traders can compare this to the UK PPI Output for January, which increased 1.2% monthly and 9.9% annualized.
The UK RPI for February is predicted to rise 0.8% monthly and 8.2% annualized. Forex traders can compare this to the UK RPI for January, which came in flat at 0.0% monthly, and increased 7.8% annualized.
The South African CPI for February is predicted to increase 0.8% monthly and 5.8% annualized. Forex traders can compare this to the South African CPI for January, which rose 0.2% monthly and 5.7% annualized. The Core CPI for February is predicted to expand 0.8% monthly and 3.7% annualized. Forex traders can compare this to Core CPI for January, which increased 0.2% monthly and 3.5% annualized.
The forecast for the GBP/ZAR turned bullish after this currency pair stabilized at its horizontal support area, and the flat Kijun-sen confirms the lack of short-term bearishness. Volatility may rise as the Tenkan-sen, and the Ichimoku Kinko Hyo Cloud, maintain their descent, but traders should monitor the CCI. After plunging deep into extreme oversold territory, it accelerated above -100 with plenty of upside ahead. A move above zero is likely to trigger more buying. Can bulls capitalize on recent gains and pressure the GBP/ZAR 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/ZAR remain inside the or breakout above the 19.5300 to 19.7530 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 19.6450
- Take Profit Zone: 20.5150 – 20.7615
- Stop Loss Level: 19.2900
Should price action for the GBP/ZAR breakdown below 19.5300, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 19.2900
- Take Profit Zone: 18.8600 – 19.0600
- Stop Loss Level: 19.5300
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio.
