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Trading the News: U.K. Jobless Claims Change
The bullish sentiment surrounding the British Pound may gather pace over the next 24-hours of trading as U.K. Jobless Claims are expected to contract another 20.0K in January.
What’s Expected:
Time of release: 02/19/2014 9:30 GMT, 4:30 EST
Primary Pair Impact: GBPUSD
Expected: -20.0K
Previous: -24.0K
DailyFX Forecast: -10.0K to -25.0K
Why Is This Event Important:
Beyond the Bank of England (BoE) Minutes, an upbeat labor report may a more meaningful reaction in the GBPUSD as it raises the outlook for growth, and it seems as though Governor Mark Carney will look to normalize monetary policy sooner rather than later as the central bank anticipates a stronger recovery in 2014.
Bullish GBP Trade: Jobless Claims Contract 20.0K+, Jobless Rate Falls From 7.1%
•Need green, five-minute candle following the release to consider a long British Pound trade
•If market reaction favors buying sterling, long GBPUSD with two separate position
•Set stop at the near-by swing low/reasonable distance from entry; look for at least 1:1 risk-to-reward
•Move stop to entry on remaining position once initial target is hit, set reasonable limit
Bearish GBP Trade: U.K. Employment Report Disappoints
•Need red, five-minute candle to favor a short GBPUSD trade
•Implement same setup as the bullish British Pound trade, just in opposite direction
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