UK Interest Rate Statement (after-spike retracement strategy

[forex4love]

Thursday, March 04th (07:00 am New York Time) UK

 

We have UK Interest Rate coming out. It is expected to read 0.5. Last month it read 0.5 as well.

 

I recommend trading GBP/USD for this report.

 

Please read what this indicator means and how it affects the GBP/USD by going to this link: UK Interest Rate Statement

 

The trigger for this indicator is 0.25. This means that if UK Interest Rate comes out at 0.75 or more, GBP/USD will probably go up by 100 pips or more in the first 45 minutes of the report. If it comes out at 0.25 or less, GBP/USD will probably go down by 100 pips or more in the first 45 minutes of the report.

 

Don't expect any changes, however. So most likely it will be a no trade. But you never know... I remember about two years ago nobody expected a change, yet they changed, and people made over 100 pips...

 

Obviously, the bigger the difference between expected and actual numbers, the bigger will be the move.

 

To read after-spike retracement strategy for this report in here: UK Interest Rate Statement (after-spike retracement strategy)

 

When trading UK Interest Rate Statement, I recommend that you open and close your trades within the first 45 minutes of the report, because after 45 minutes, there will be other non-related market forces that will be affecting the currency pair.

 

With UK Interest Rate, there are generally two waves that you could ride and make money with.

 

The first wave is when the currency starts going up or down right after the release of the number.

 

The second wave is when the currency reaches its initial top or bottom price, then retraces, and makes another run for the high or low price.

 

UK Interest Rate rarely comes out different from expectations. So it's hard to say how much of a retracement is going to happen before the second wave, because there is simply not enough data available.

 

In the signal, I tell you exactly how many pips the currency will most likely move, depending on the difference between expected and actual numbers.

 

For example: on November 6th, 2008, UK Interest Rate came out at 3, versus an expectation of 4. GBP/USD went down by over 150 pips in the first 4 minutes of the report.