gbp/usd buying opportunities

It is obvious that gbp/usd has been in a long term trend (over a year) and the best type of playing the pair was buying of dips. It has been moving up in waves over a year and I believe we are going to see another cycle up. To tell the truth the first wave up in a bullish move is about to end. If you look at the chart you can see that the pair found its bottom on the first of March and made two strong moves up. I expect it to run some 50-100 pips more from a current level before reversing and a leg down next week.

I marked support and resistance levels on the chart. You can play both waves, but the trend is up now. I expect the pair to reach previous top of 1.4350 by the end of the month and possibly move higher later in the year, provided price action confirm bullish trend continuation pattern.

There is some chance of the pair going sideways and forming a narrowing range, but I favor the pair moving up in waves, the way it went down from the 25^th of January. So, there are hundreds of pips to be claimed and a lot of money earned. I have positions in gbp/usd and gbp/jpy opened expecting them to close tomorrow or Friday and wait for another opportunity to buy.

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Disclaimer: All trading involves risk. Only risk capital you’re prepared to lose. Past performance is not an indication of future results. This content is for educational purposes only and is not investment advice.

My 3 top Forex news releases

I have written a lot about importance of Forex news in day trading. These events give us day traders a lot of opportunities to make a lot of pips quite fast. Of course, news trading is pretty risky and requires a lot of patience, practice, experience, very strict money management rules and ability to make decisions fast when things go not as we have planned. In the article I want to single out those Forex news releases that are my favorite. 

First of all, I want to say what criteria I have for news releases to trade them. If you look at the schedule of those events and then look at market reactions to them, both before the release and after the release you will quickly notice that some events have very low importance, some have medium importance and yet others have very high importance. The latter are in my area of interest. 

Big movements in securities are necessary for money to be made on these news releases. These are not often, but when they happen you are rewarded for your patience and discipline. 



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So, which news are top? The answer may differ a bit, but for me they are as follows:

1. Non Farm payrolls. The release has been quite a sensitive area for most traders as the state of US jobs are one of the main ways to see the state of the economy of the strongest country in the world. This event causes a lot of volatility in all markets, not only Foreign Exchange. I still remember times when the news would cause currency pairs move hundreds of pips in a matter of a second. This has changed, but from time to time history repeats itself. Be aware of that!

2. Interest rate decisions from central banks. These may not always have immediate reactions, but reactions will be in a matter of a few days. There might be a few decisions the same week or even day, so it is better to wait till all of them are announced and only then place trades. Markets often become less active before the announcements and volatility increases in the first hours after the release or in the next two days. When this news is announced around important support or resistance levels you might catch a nice reversal and make a swing trade that might allow you to get 1000 pips or even more. 

3. GDP from around the world also is an event that will have strong impact on the markets medium term. Again, the reaction may not me immediate, but as the market digests the data that is releases it will eventually move one direction or another. You will simply have to go with the flow.

I hope you will take time to watch what happens when these news events happen and learn from the experience. Hope the post was useful and interesting too. 

For more on the topic of Forex news read:

10 essential rules for trading Forex news profitably

Top 15 Forex trading strategies for profit

Disclaimer

Trading financial markets carries a high level of risk, and may not be suitable for all investors. All information on the blog http://trend0.blogspot.com/ is of educational nature and cannot be considered as advice, recommendation or signals to trade in any financial markets.