Source: PaxForex Premium Analytics Portal, Fundamental Insight

With the UK election just two days away, forex traders will receive a heavy dose of economic data out of the UK. GDP data, industrial and manufacturing data, and the index of services data are eagerly awaited. The GBPAUD has extended its rally, but how will price action react to this morning’s economic releases? Today’s fundamental analysis will take a look at price action in both directions.

The UK election campaign started as PM Johnson is trying to secure a majority in Parliament in order to get this Brexit deal approved. The British Pound will be exposed to plenty of headlines until Britons head to the first December election in almost one century. Forex traders will also get the October Manufacturing PMI today to close out an eventful week, what impact will it have on the GBPAUD? Today’s fundamental analysis will take a look at price action in both directions.

With Brexit roughly two weeks away and the EU and the UK apparently still too far apart to reach a deal, analysts will await today’s UK employment data in order to gauge the health of the labor market amid an uncertain Brexit outcome. Wage pressures have been elevated and economists expect this to continue. How will today’s employment data impact price action in the GBPAUD? Today’s fundamental analysis will take a look at the downside risk as well as the upside potential in this currency pair.

Brexit continues to be in the driving seat for the British Pound. Following positive comments out of the EU that a deal is possible before October 31st 2019, the British currency rallied. Sentiment shifted towards a more cautious tone after Ireland said that while the mood has improved, both sides remain a distance apart. Today’s CBI data out of the UK is expected to show weakness in order with a minor price recovery. Inflation is running slightly above the the Bank of England’s long-term price target. Will today’s data move the GBPAUD?

Forex traders will get key employment data out of the UK this morning. Despite Brexit uncertainties, employers have added jobs and more importantly wages have risen. This will ultimately keep the Bank of England sidelined as wage inflation is on the rise and provide a floor for the British Pound moving forward. Will today’s data deliver? The GBPAUD has started to retrace part of its powerful advance which spanned almost 800 pips over a four week period. Will price action slide further to the downside and into support or will a breakout keep the rally alive?

Australia reported a surprise rebound in consumer confidence for August as second-quarter wage inflation rose slightly above expectations. The Australian Dollar was unable to capitalize on the better-than-expected data as China reported weaker industrial production and retail sales data. With yesterday’s stronger-than-expected UK employment data, the GBPAUD remains well support at current levels, will a breakout follow or will US President Trump’s announcement of a delay in certain tariffs force a breakdown?

The Bank of England is expected to hold interest rates at current levels and keep stimulus intact. With Brexit less than 100 days away, it is unlikely that the British central bank will move. The British Pound has sold off heavily across the board as PM Boris Johnson is preparing the country for a no deal Brexit. Did forex traders price this even in already and is the risk now to the upside? The GBPAUD started to stabilize and recover, will price action extend further to the upside? Today’s fundamental analysis will explore the options in both directions.

Forex traders are awaiting a series of economic reports out of the UK in order to assess if current support levels will hold in the British Pound or if today’s data will inspire a fresh wave of sell orders. The May GDP figure is anticipated to show a recover with a slight increase in the service sector. Industrial and manufacturing production as well as construction output are all expected to show a solid increase. Will today’s data allow bulls to push price action higher or will it give bears ammunition to attempt a new breakdown in the GBPAUD?

Here are the key factors to keep in mind today for British Pound trades:

Here is the key factor to keep in mind today for British Pound trades:

Here are the key factors to keep in mind today for British Pound trades:

Here are the key factors to keep in mind today for British Pound trades:

Here are the key factors to keep in mind today for British Pound trades:

Here are the key factors to keep in mind today for British Pound trades:

Here are the key factors to keep in mind today for British Pound trades:

Here are the key factors to keep in mind today for British Pound trades:

Here are the key factors to keep in mind today for British Pound trades:

Here are the key factors to keep in mind today for British Pound trades:

Here are the key factors to keep in mind today for British Pound trades:

Here are the key factors to keep in mind today for British Pound trades:

Here are the key factors to keep in mind today for British Pound trades:

Here is the key factor to keep in mind today for British Pound trades:

Here are the key factors to keep in mind today for British Pound trades:

Here are the key factors to keep in mind today for British Pound trades:

Here are the key factors to keep in mind today for British Pound trades:

Here are the key factors to keep in mind today for British Pound trades:

Here are the key factors to keep in mind today for British Pound trades:

Here are the key factors to keep in mind today for British Pound trades:

Here are the key factors to keep in mind today for British Pound trades:

Over the past few trading weeks the British Pound has rallied and so has the Australian Dollar. The GBPUSD and the GBPJPY have seen very strong advances and so has the AUDNZD.

Here are the key factors to keep in mind today for British Pound trades:

Here are the key factors to keep in mind today for British Pound trades: