Forex News Trading UK Revised GDP q/q 11/24/11

UK quarterly GDP release is always a high impact report. However, with this being the Revised release, or the second release of three, we are likely to see less market volatility. Here is the forecast number:

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4:30am (NY Time) UK Revised GDP q/q Forecast 0.5% Previous 0.5%
ACTION: GBP/USD BUY 0.7% SELL 0.3%

The Trade Plan
Our deviation for today’s trade is 0.2% to SELL and 0.2% to BUY. We’ll look to possibly SELL GBP/USD at 0.3% of release figure or worse; BUY GBP/USD at 0.7% of release figure or better. Depending on the surprise of this release, we could go from after news retracement trade to spike trading. I believe if we get a 0.8% or better release, it justifies spiking trading to buy GBPUSD immediately. If we get -0.1%or worse, then it is also justified to SELL GBPUSD on a spike trade.

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The Market
After a 0.1%+ better deviation (0.5% vs 0.4% expected) for the 3rd quarter Prelim GDP 2011 release, today’s Revised GDP may just fall in-line with expectation.  Considering the overall EU debt crisis, the high inflationary pressure in UK, and the economic slowdown in the U.S. and across the globe, any positive deviation should bring buyers back for the Sterling.

Additional Thoughts
I’d be possibly inclined to jump in as a spike trade if we get a strong surprise either way, I believe market will remain driven by this release for an extended period of time, possibly extending the move through the end of the week, or end of the year even.

Pre-news Consideration
There is no pre-news consideration for this release today. But due to the uncertainty of it all, I would probably be more inclined to a SELL than a BUY.

Definition
GDP is defined as “the market value of all final goods and services produced within a country in a given period of time. It is also considered the sum of value added at every stage of production of all final goods and services produced within a country in a given period of time.” GDP is the basically direct measure of the economy’s health, and a stronger GDP means that the central bank will more likely to raise interest to curb inflation.

 

Thanks,

 

Forex News Trading UK Prelim GDP q/q 07/26/11 henry sig

About Henry Liu

My name is Henry Liu and I am a Forex Trader and Mentor. I help traders achieve consistent income trading Forex while spending less time trading. My focus in trading is a combination of Fundamental Analysis, Technical Analysis, and Market Sentiment. Far too many retail Forex traders concentrate on just one aspect of trading, technical analysis, and ignore everything else; it is my goal (and vision) to educate every trader on how to take advantage of news trading and become more balanced traders.

You can find more information about me on my Google Profile.

Comments

  1. Hi Henry,

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    Best Regards,
    James

  2. Hi Henry,

    Great piece of advice you have there. I have subscribe to your RSS feed, and looking forward to see more interesting article from you. =)

    Best Regards,
    James

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