4:30am (NY Time) Forecast 0.8% Previous -1.8%
ACTION: GBP/USD BUY 1.4% SELL 0.2%
We’ll be trading Retail Sales release today from UK, it’s a direct measurement of consumer activities at the retail levels. A higher release is generally good for the economy, and better for it’s currency; a lower release is considered as negative for the economy and not good for it’s currency. Retail Sales makes up a decent part of the GDP and the effect of this release could be very profound to the immediate trend given the current risk averse condition of the market.
Our tradable deviation or surprise factor for UK Retail Sales is 0.6% on the Headline number. If our deviation is hit, we can expect the market to move at least 50 pips within the hour, with a historical accuracy of 72%. With recent bullish news in the US and the general bearish trend in all European currencies, GBP has broken current immediate support areas and the next significant support is below the 1.4800… should we get a better release, we could see some profit taking by Sterling short sellers and speculators entering long trades on the back of the exaggerated bearish movements in the past 2 weeks… it’s possible to see the market move above the 1.5150 level if we were to get a strong Retail Sales release, and test 1.4780 level if the Retail Sales falls significantly short of expectation.
Related posts:
- UK Retail Sales m/m 02/19/2010
- Forex News Trading Plan For UK Retail Sales m/m 11/18/10
- Forex News Trading UK Retail Sales 10/21/10
- Forex Trading Plan For UK Retail Sales 04/22/10
- Forex Video & Analysis For UK Retail Sales 8/19/20
- Forex Strategy for UK Retail Sales 08/18/11
- Forex Analysis For UK Retail Sales 07/21/11
- Forex News For UK Retail Sales September 15, 2011
- Forex News Trading UK Retail Sales m/m 02/18/11
- UK Retail Sales m/m 01/22/10
