November 1, 2012
Manufacturing PMI is a leading indicator that is usually released early in the month. Traders pay attention to this release for surprises as this survey may help to shape the general trend of the currency for the rest of the month. Here is the forecast:
5:28am (NY Time) UK Manufacturing PMI Forecast 48.1 Previous 48.4DEVIATION: 2.5 (BUY GBP 50.5 / SELL GBP 45.5)
DEFINITION“UK Manufacturing PMI is a survey of purchasing managers in the manufacturing sector on various economic activities, including inventory, employment, orders, etc… A higher than 50 reading means expansion, or a less than 50 reading means contraction.”
The Trade Plan
We´re looking for a tradable deviation (or the difference between the forecast figure and the actual release figure) of 2.5. Since this is a leading indicator and its impact may hint the future trend of other economic indicators (such as inventory, employment, retail sales, etc..), the market usually reacts to this release with volatility if we get our deviation.
We´re looking for a tradable deviation (or the difference between the forecast figure and the actual release figure) of 2.5. Since this is a leading indicator and its impact may hint the future trend of other economic indicators (such as inventory, employment, retail sales, etc..), the market usually reacts to this release with volatility if we get our deviation.
We´ll be looking to BUY GBP if we get a 50.5 or better, or looking to SELL GBP if we get a 45.5 or worse.
Recommended Pairs : GBPUSD, GBPCHF
Resistances : Weekly 1.62, Daily 1.6175 , Hourly 1.614
Supports : Weekly 1.6065 , Daily 1.6095 , Hourly 1.612
GBP / USD - British Pound / U.S. Dollar
Resistances : Weekly 1.62, Daily 1.6175 , Hourly 1.614
Supports : Weekly 1.6065 , Daily 1.6095 , Hourly 1.612
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