Trading on the news attracts many people as it allows swift and prospective ways to earn.
Next week is notable for news from the UK such as:
* Unemployment Rate,
* Industrial Production (MoM),
* Manufacturing Production (MoM).
They are remarkable for their effectiveness and profitability based on the analysis for the whole time of trading on the news.
Thus, it means users can choose any instrument with the pound sterling and start trading.
We focus on the GBPUSD currency pair because this week is not that eventful with US news.
The fundamental aspects of the countries show the U.S. economy is currently ahead of the U.K. economic state, which is surely profitable for the U.S. dollar.
If unemployment increases as projected, the pound weaks further and the GBPUSD will keep declining.
According to expectations, production in the downstream sector will rise, which may support the pound briefly. But, against the background of the interest rate hike, credit rating downgrade and difficult economic situation in the country, the effect will be very short-lived. And further on, the pound will continue to decline towards parity with the US dollar.
How to act?
For production indicators (M15 timeframe):
If the indicator is rising, buy GBPUSD at the time the data is published.
If the figure is declining, sell GBPUSD at the moment the data is released.
For the unemployment rate (M15 timeframe):
If the figure is rising, sell GBPUSD at the time the data is released.
If it is going down, we buy GBPUSD at the moment the data is released.
Close the deal 3-4 hours after market entry.
We place the Stop Loss below the previous day's minimum for buying, and above the previous day's maximum for sale.
Remember about the spread and money management rules!
Trading in financial markets implies a high level of risk and can result in loss of invested capital. The MarketCheese team is not responsible for possible loss of your investment funds.