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  • GBP/USD: Trading the British Services PMI

    From forexcrunch.com

    British Services PMI is based on a survey of Purchasing Managers in the services industry. The survey asks respondents for their view of a wide range of business conditions, including employment, new orders, prices and inventories. A reading which is higher than the market forecast is bullish for the pound. Here are all the details, and 5 possible outcomes for GBP/USD. Published on Wednesday at 8:30 GMT. Indicator Background UK Services PMI rose to 59.1 points in July, marking a 8-month high. This beat the estimate of 58.1 points. A reading above the 50-point level signifies expansion. The markets are expecting ... (full story)

Right - as another site suggested to trade the construction PMI yesterday :-). Does anyone actually believe after the huge drop yesterday (over 140 pips for 24hrs) - cable will suddenly spike 100 pips or reverse to buy due to single data release?! At best if data is good it would spike 50 pips so bears could load more shorts. Cable would not reverse it's weekly fall today.
I'm looking more at the GBP/JPY for this one. It's been bullish for the past 2-3 weeks now, after having a long tumble that started in July. It's also been going bearish today after a big bullish surge yesterday. This news is likely to happen when it hits the support level I'm seeing on this pairing. So some good news might keep it on the up and up until the BOJ info in about 24 hours.

As far as the G/U goes, it's not likely to reverse the overall daily trend. But it might give it a push up to the 1.65300 area, before it continues its descent. For it to really change direction, you'd need more than one piece of news (unless it's an interest rate hike) to make it happen.
Quoting michaelpelly
Right - as another site suggested to trade the construction PMI yesterday :-). Does anyone actually believe after the huge drop yesterday (over 140 pips for 24hrs) - cable will suddenly spike 100 pips or reverse to buy due to single data release?! At best if data is good it would spike 50 pips so bears could load more shorts. Cable would not reverse it's weekly fall today.
Amen Brother
Forex rules
i just waiting for the 1.6380 level.
Looks like the big boys started the movement a half hour before it hit. Seems there's more positive movement on the G/U than the G/J which I'm currently following.

Going to sit on a couple of trades for an hour or so and see how they are then.

Go figure. Great news for the pound, nothing but an overblown tug of war on the market.
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  • Posted: Sep 2, 2014 4:21pm
  • Submitted by:
     Yohay
    Category: Fundamental Analysis
    Comments: 5  /  Views: 2,454
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