At the beginning of the February, the news-based trading has been successful. The publication signal of multidirectional data on employment in the USA and Canada has worked out.
Today, there will be again a probability to work with news but this time on kickbacks.
Today, at 18:00 Moscow time, the U.S. real estate market statistics will again be updated in terms of New Home Sales and New Home Sales (MoM).
These events have been shown good results in the kickback trading.
According to the forecasts,New Home Sales in the USA will be decreased, plus three of four real estate market indicators of 17 February have also decreased: Housing Starts MoM, Housing Starts, and Building Permits MoM.
If forecasts are justified, the US dollar will likely be under the pressure. Thus, as a trading instrument, any currency pair with the US dollar can be chosen.
This time, we examine GBPUSD.
What is the stategy?
1. On Thursday, real estate market indicators will be decreased compared to the preceding period:
- On the chart of the GBPUSD currency pair, we place the BuyLimit order at the distance between 0.2 and 0.3% from the price at the moment of updating statistics.
- Place Take profit at the price level at the very moment of data release or slightly lower. Or leave the market at the closing of the 8th hour of trading after the deal opening.
If the order at the opening a position does not work within 8 hours, we delete it.
2. On Thursday, the real estate market indicators will be increased compared to the previous period:
- On the chart of the GBPUSD currency pair, place the SellLimit order at the distance between 0.2 and 0.3% of the price at the moment of updating statistics.
- Place Take profit at the price level at the very moment of data release or slightly higher. Or leave the market at the closing of the 8th hour of trading after the deal opening.
If the order at the opening a position does not work out within 8 hours, we delete it.
3. On Thursday, the indicators of the real estate market have not changed or are multidirectional compared to the previous period:
Remember that volatility often increases on news publications!
It is also necessary to account for the spread and follow the rules of capital management!
As for fundamental aspects, today the U.K. economy is more attractive rather than the U.S. economy that is in favor of probable growth of the GBPUSD currency pair.
Trading at financial markets involves a high level of risk and it can be followed by a loss of investment capital.
The MarketCheese team is not responsible for a possible loss of Your investment funds.