GBP/USD – Technical Analysis for Forex Trading & CFDs.
United Kingdom – Manufacturing Production
On Wednesday, at GMT 9:30 a.m., the UK’s Office of Labor Statistics will release the United Kingdom’s manufacturing production figure. It measures the total inflation-adjusted value of output produced by manufacturers in the country.
Businesses are the first to react to changing economic climate and the manufacturing production makes up around 80% of the total industrial production in the United Kingdom. Hence, Forex traders consider this data to be a leading indicator of the overall economic health of the country.
Last month, the UK’s manufacturing production increased by 0.1%. Analysts are estimating that this month it would increase by 0.3%.
United States – Producer Price Index
On Thursday, at GMT 1:30 p.m., the US Department of Labor will release the Producer Price Index (PPI) figure. It measures the changes in the price of products and services bought by manufacturers and service providers in the country.
The higher cost of production is usually passed on to the consumers. So, a rise in the producer price index indicates future inflation. Hence, this data is vital for Forex trading as it is used by Forex investors as a leading indicator of the overall US economy.
Last month, the US month-over-month PPI increased by 0.4%. It indicated inflationary pressure on the economy. Analysts are expecting that this month it will increase by an additional 0.2%.
The GBP/USD remained highly bullish since the start of 2017. Over the last year, it climbed up by around 1,000 pips. However, after reaching the resistance near 1.3600, the GBP/USD found a strong resistance. Last week, the pair once again found strong resistance near the same level. Currently, it is trading just below the resistance near the 1.3600 level.
The manufacturing production in the United Kingdom likely grow at 0.3% last month as opposed to 0.1% in the previous month. However, the producer price index in the United States may come down from 0.4% to 0.2% in the last month. We believe it would set a bullish fundamental outlook for the GBP/USD this week. Therefore, if the GBP/USD closes above the resistance near 1.3600, it would likely attract additional bullish momentum in the market.
Hence, Australian Forex traders should look out for trading opportunities above this major resistance level around 1.3600.
Over the last two weeks, the BTC/AUD remained range bound and it mostly traded below the resistance near 23,500. During this timeframe, the trading volume also became relatively low. Especially, after last few days of December 2017, BTC/AUD trading volume declined at an alarming rate.
Most Australian bitcoin traders consider the BTC/AUD to be a safe haven commodity. If the economic news turns uncertain in this coming week, it will likely create some bullish momentum in the cryptocurrency market. In that scenario, the BTC/AUD breaks above the resistance near 23,500, it might gain ample potential to go much higher.
Hence, Australian bitcoin traders should look out for trading opportunities above this major resistance level around 23,500.