OUR LAST LIVE ON THE NEWS TRADE CALL
In my last call I said that I would go long on the GBP/USD If the durable goods Core came out lower than expected by 1.8%. The expected number was .2% and the actual number came out at -1.7% which hit our trigger for a buy. We had a couple of targets in mind the first major level was yesterdays highs.
The market moved up nicely striking our target allowing us to exit with around 20+ pips profit. I only made a few thousand today as I was a little nervous with the GBP being so high I only entered with 10 lots.
There were some who stayed in for the 8500 target we got from the analysis of the day chart. To see how I set up and managed this trade watch this video. If you would like to skip to the actual signal it is about 4 minutes into the trade.
OUR NEXT LIVE ON THE NEWS TRADE CALL
Tomorrow we have the US GDP being released at 8:30am. The expected number is 1.8% and a higher than expected Number will signal a sell and a lower than expected number Will signal a buy on the GBP/USD.
This release has only hit my trigger around 8 times in The past 3 years. As long as we don’t have any conflicting data from the GDP deflator we should be fine. I have only see one time that the deflator conflicted enough to cause an issue and that was 4/28/04. The GDP was released at .4 less than expected and the deflator was a full 1.1% more than expected. The market obviously followed the deflator on this one.
So if the GDP comes out higher than expected by .5% I will Sell the GBP/USD and if it comes out lower than expected by .5% I will go long on GBP/USD.
Good Luck trading!!!
