By FX Empire.com
Economic Events
Major Economic Reports due this week. Please refer to the daily reports for explaination and forecast
US Markets closed on Monday for Presidents Day Holiday
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Feb. 21 |
00:30 |
AUD |
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13:30 |
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Feb. 22 |
09:30 |
GBP |
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15:00 |
USD |
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Feb. 23 |
09:00 |
EUR |
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13:30 |
USD |
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Feb. 24 |
07:00 |
EUR |
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09:30 |
GBP |
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15:00 |
USD |
GBP/USD Weekly Fundamental Analysis February 20-24, 2012, Forecast
Historical:
Highest: 1.681 USD on 17 Nov 2009.
Average: 1.5807 USD over this period.
Rule:
GBP/USD: While the ranges are wider (and so should stops be), the lines are rather distinctive, especially towards the borders of the long term wide range. This pair makes for good trades, with the new austerity program implemented in the UK, the GBP is moving more on Fundamentals now.
Characteristics
Average broker spread: 4-5 pips
Daily range average: 150-200 pips
Best time to trade: Euro Session (0700 GMT – 1700 GMT)
Some factors affecting the GBP/USD rate:
- The interest rate differential between the Bank of England(BoE) and the Federal Reserve
- High yield and attractive growth in the UK drives GBP/USD higher
Trading the GBP/USD
Trading Experience: Expert currency traders
Trading Style: Day trading and Swing trades
How to trade?
Applying Technical Analysis and/or Analyzing Fundamental News from the UK and US zone to make GBP/USD trading decisions. Watch out for false break outs. Surprising economic news releases can make the GBP/USD move a lot in one direction without much retracement.
Analysis and Recommendation:
The GBP/USD up at 1.5828. This past week the BoE announced an additional round of QE slightly surprising the markets. Also UK retail sales figures came in way above estimates bolstering the sterling. In the US, economic data gave strength to the recovery with a drop in unemployment claims and an increase in housing starts ( multi family ) along with other supporting reports.
Most of the week the markets ignored everything but Greece, investors jumped in and out of currencies based on rumor, innuendo, conjecture and news. The USD was up and down all week long. It will most likely continue this way in the upcoming week, with the US markets closed on Monday. Late in the week, UK GDP is expected to move the pound depending on reports and data.
Strength
