Bulls Make money Bears Make Money Pigs get slaughtered

Date:27/7/2011

News: Fundamentals

The UK GDP release overnight showed the economy gaining 0.2% but it held some caveats that helped make the case that growth was better than the reading suggested. Relief is a good word overall for the result, but even with the soft reading, it can help set a tone for the GBP over the next few weeks as the economy has not reversed. With ongoing concerns about the US over the debt impasse, the GBP/USD can mange to make a run at the 1.6550 area in the next few weeks.
however GBPUSD is in a broad down trend...
USD is either unchanged or slightly higher against the major currencies since London open. German CPI is still being collected but regions that already announced results see somewhat higher readings. GBP weakens after CBI Industrial Order Expectations drops. US session will bring June Durable...


from Daily fx and Ashraf L

Strategies Update

Mr Price has retreated from the highs of 1.6438 as a result the dip buying play mentioned on the 24/07/2001 post has worked out nicely reaching the 1st target of 1.6386
Presently the 5wave wave up break out should have finished and the Daily 3rd wave decline should be under way. Whether Mr Price agrees with this will have to Waite for a break of 1.6201.Untill then a further rise above 1.6438 will target 1.6545 and affirm the continued bullish case and send GBP/USD through 1.6758 second target.


Synchronize: 4hr anchor stochastics

Success %:
Daily 100% Short Positioning
Short-term Expectation:

Elwave Daily 3rd wave down.
Below 1.6201 1st target 1.5545 2nd Target 1.4958
Else if Mr price holds breakout zone look for a further rise to 2nd target 1.6545

Trade: Entry long within the break out zone!! Stop 1.6201
Else
below break out zone sell short .
Conclusions and concerns: Entry within break out zone only on strong technical’s and continued good news coming out of the UK

next is (CBI) Distributive Trades Survey

Actual -
Forecast 2.00
Previous -2.00
The Confederation of British Industry (CBI) Distributive Trades Survey (DTS) measures the health of the retail sector.
The reading is concluded from a survey covers 20,000 outlets of firms responsible for 40% of employment in retailing. It includes measures of sales activity across the distributive trades.
It's a leading indicator of consumer spending.
The figure is the difference between the percentage of retailers reporting an increase and those reporting a decrease.
A higher than expected reading should be taken as positive/bullish for the GBP, while a lower than expected reading should be taken as negative/bearish for the GBP.

GBPUSD UpDate 29/02/2011




BAD GDP news coming out of the US
Actual 1.30%
Forecast 1.70%
Previous 1.90%

The Gross Domestic Product (GDP) is the broadest measure of economic activity and is a key indicator for the economy's health.
The Annualized (quarterly change x4) percent changes in GDP shows the growth rate of the economy as a whole.
Consumption is by far the largest component in the GDP of the US and has the most affect on it.
The figures can be quite volatile from quarter to quarter.
A higher than expected reading should be taken as positive/bullish for the USD, while a lower than expected reading should be taken as negative/bearish for the USD.