In February this year news trade has delivered its benefits. On February 4, there was a good signal of differently directed data on employment in the USA and Canada, and on February 24 it was a pullback of the US real estate market data.
Tonight there will be an opportunity to trade on pullbacks again, based on the statistics of the US real estate market.
At 5:00 p.m. Moscow time, there will be updates on New Home Sales and New Home Sales (Mom), events that have shown good results in the pullback trade.
New housing sales in the U.S. are predicted to decline. If expectations are met, the pressure on the US dollar is likely to increase.
As a trading instrument, any currency pair can be taken with the US dollar.
GBPUSD as one of the most volatile currency pairs with the U.S. dollar is the most preferable.
Strategy
1. Indicators of the real estate market will decrease in comparison with the previous period:
* Place a BuyLimit order at a distance of 0.2 - 0.25% of the price at the time of the statistical data update on the GBPUSD pair graph.
* Take profit is set at the level of the price at the moment of data publication or a little bit lower.
Or leave the market at the closing after 8 hours of trading since the deal opening.
If the order to open a position does not work within 8 hours, delete it.
2. Indicators of the real estate market will increase in comparison with the previous period:
* Place a SellLimit order at a distance of 0.2 - 0.25% of the price at the time of the statistical data update on the GBPUSD pair graph
* Take profit is set at the level of the price at the moment of data publication or a little bit higher.
Or leave the market at the closing after 8 hours of trading since the deal opening.
If the order to open a position does not work within 8 hours, also delete it.
2. Indicators of the real estate market have not changed or are differently directed in comparison with the previous period:
* Hold back from trading.
Don't forget that volatility often increases with news publications! It is necessary to take into account the spread and follow the capital management rules!
On the fundamental aspect, the British economy is more attractive than the U.S. economy, which is favorable for a potential rise in the GBPUSD pair.
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.
