Thursday, 27 June 2013

GDP release breaks British Pound



I did not mark today’s Great Britain release on its’ Gross Domestic Product by mistake. You see I follow dailyfx calendar and they have statistics on which release has the highest impact on markets. I usually skip those that are of medium importance. However, it turned out that they marked today’s release as of medium importance and this fooled me. I actually had a long in gbp/chf from yesterday, which was not out right when the news hit the wire. It’s no wonder that Pound fell across the board. 

Open 15 minute charts in various British Pound pairs to see what happened. I follow 7 Pound denominated pairs and I can clearly see that ‘the cable’ (British Pound) was beaten in all of them. The biggest drop was probably in gbp/jpy. It collapsed around 70 pips. The second best pair to trade the news would have been eur/gbp, which has much higher pip value than most other pairs. It is not very volatile, but today its’ behavior was extraordinary. It rose around 40 pips, which would probably be equal to gbp/jpy fall or even worse. I am still positive on some Pound pairs, but they have to clear their technical resistance levels before real bullish price action is confirmed. 

I will expand more on this in tomorrow’s update.

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