Tomorrow at 09:00 Moscow time, the UK macroeconomic statistics will be updated, in particular, data on GDP, Industrial Production, Manufacturing Production and Trade Balance.
The first three indicators are of the greatest interest, since they have showed a significant average yield of a deal in news trading.
According to the forecasts, two out of three indicators will be decreased - this is GDP and Manufacturing Production, which is likely to negatively affect the British pound sterling. This means that you can choose any currency pair with the pound for trading.
Let's pay attention to the GBPAUD currency pair.
The pair is quite volatile. In comparison with the economies of Great Britain and Australia, the Australian one wins a little, which is not in favor of the pound and predicts a possible decline in the pair:
The technique also "votes" for the GBPAUD decrease: a reversal pattern "doji star" has formed near the resistance level of 1,775, foreshadowing the beginning of the price movement down. Note that the previous "shooting star" and "hammer" reversal patterns have been confirmed and worked out themselves.
Trading strategy (M15 timeframe):
1) If the forecasts turn out to be the true, and GDP and / or Manufacturing Production will be decreased:
Sell GBPAUD at the time of statistics update.
Place a Take Profit order at the level of 0,1-0,2% below the price of opening.
Place a Stop Loss order at the level higher than the High quote of the previous hour.
A position can be closed from the market 8 hours after the statistics update.
2) If the forecasts are not confirmed, and GDP and / or Manufacturing Production will be increased:
Buy GBPAUD at the time of statistics update.
Place a Take Profit order at the level of 0,1-0,2% above the price of opening.
Place a Stop Loss order at the level lower than the Low quote of the previous hour.
A position can be closed from the market 8 hours after the statistics update.
3). GDP and / or Manufacturing Production will remain unchanged:
Refrain from entering the market.
Warning!
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 investment capital.
This content is for informational purposes only and is not intended to be investing advice.
