Starts with a view and a trade idea (this is cut and pasted from my daily webcast; I choose one trade idea each day)
The UK CIPS services ws scheduled for release at 9:30am London Time; the GBPUSD pair had a
very tight range for the prior twelve hours; if the UK CIPS services number was worse than the
consensus forecast it could be a good time to sell the GBPUSD pair in anticipation of the expected
decline prior to the US non farm payroll later in the day.
The UK CIPS services number was worse than the consensus forecast (54.5 versus 55.8)
And that is a possible sell GBPUSD signal because it should cause some GBPUSD selling
and possibly enough selling to get a bearish GBPUSD move in motion. That is in fact
After the news release it was possible to sell at 1.2615 or better! The GBPUSD pair continued down another 40 pips!
In case you’re wondering about where to put the stop loss; above the price before the news was released (so above 1.2625; a small pip risk!)