Tomorrow we have a couple of releases to watch. The first is the the UK Retail Sales coming out at 4:30am eastern which is expected at .3%. I would like to see around .2% deviation to trade this. Historically .2% deviation has given lower than desired moves however it has also provided 50+ pip moves. I will be very careful with this. If the market has established a strong direction during the European session and the release comes out against the trend of the session I will be quick to take profits however if it comes out in the direction of the session I may let it ride a bit longer. A higher than expected number signals a buy on the GBP/USD and a lower than expected number signals a sell. This release is a fairly dangerous release in my mind simply based on the inconsistent moves that it has caused in the past. In one of the last videos I sent out you saw how major resistance can affect the market during a news release. Many times the market will move in the right direction temporarily and then react violently off of the level of support or resistance. It is important to be able to identify these levels and factor them into the trade before the release. That is also why in the videos you hear me calling out the pre release price; it is so we know how far away it is from the next major point of support or resistance just before the release. Anyway enough of my carrying on.
The next release we will be trading is the US Retail Sales which is coming out at 8:30am eastern and my focus will be the less autos. This is expected at .3% and could be a good trade however it very seldom hits out triggers. I will be looking for 1% deviation and a higher number signals a sell on the GBP/USD and a lower number signals a buy. I wish this were cut and dry however there are some other things to consider. We also have the import price index which could have some affect on the market. In addition to that we also have Initial jobless claims which affects the market opposite the other two releases. A higher number on this is bad for the us and signals a buy and a lower number signals a sell on the GBP/USD. The focus is the Retail Sales less autos however as you can see there are other factors that will play a part in this release. My suggestion is to trade with less lots or on demo for this trade; it could get tricky. If all the numbers come in biased the same direction this will be a great trade however if all the numbers come in conflicting than I will pass all together. Good Luck!!!
P. S. If this is the first time you are receiving my trade calls please visit this page for info on how to trade using my calls.
