Today traders will have an opportunity to profit from the UK news.
At 9:00 Moscow time the macrostatistics will be updated in terms of the following indicators:
* GDP (QoQ),
* Industrial Production (MoM),
* Industrial Production (MoM).
These events showed significant results while testing news strategies and trading on rollbacks.
All three are expected to decrease. In case the expectations are met, the pressure on the British pound is likely to increase.
As a trading instrument, any currency pair with sterling can be taken.
Today's focus will be on the GBPCHF medium volatility currency pair.
From the British and Swiss economies' point of view, their conditions are about the same today, which apart from trading in the news direction is also in favor of trading on rollbacks, as none of the countries has a clear advantage.
So, the possible options for entering the market (timeframe M15):
1. The forecasts will be justified:
* To sell GBPCHF the time of indicators updating.
* To put a Take profit 0.1 - 0.2% below the opening price.
Or to close the position after 8 hours, using Trailing Stop.
* To put Stop Losses above the previous day's High quotation.
2. Indicators will grow, against forecasts:
* To buy GBPCHF the time of indicators updating.
* To put Take profit 0,1 - 0,2% above the opening price.
Or to close the position after 8 hours, using Trailing Stop.
* To put Stop Loss below the previous day's Low quotation.
3. To trade on the pullback of the British GDP data:
To put two pending orders Buy Limit and Sell Limit at the distance 0.15 - 0.3% of the current price a few seconds before the data update on the GBPCHF pair graph.
Then, if:
- GDP will decrease, then we leave only a Sell Limit order.
- GDP will increase, then we leave only a Buy Limit order.
* To put the Take profit at the level of the price at the moment of data publication or a little bit lower/higher.
To leave the market at the end of 8-th hour of trades after opening of the position, if Take profit won't work.
* To put a Protective order below/higher the previous day's Low/High quotation.
If the order on the position opening does not work within 8 hours, delete it.
4. Indicators have not changed or are differently directed in comparison with the previous period:
* Refrain from trading.
Keep in mind the spread and money management rules!
Warning!
Financial market trading is inherent in high level of risk and can cause loss of investment capital. MarketCheese team is not responsible for the possible loss of your investment funds.
This content is for informational purposes only and is not intended to be investing advice.
