What’s Expected:
September 2014 U.K. Consumer Price Index
GBPUSD: 108 pips price movement by GBP - PPI news event :
Why Is This Event Important:
Despite the downward revision to the BoE’s growth & inflation forecast, sticky price growth in the U.K. may spur a greater dissent within the Monetary Policy Committee (MPC), and it seems as though Governor Mark Carney will continue to prepare household & businesses for higher borrowing-costs as the economic recovery becomes more broad-based.
How To Trade This Event Risk
Bullish GBP Trade: U.K. Core Inflation Rebounds in October
- Need red, five-minute candle following the release to consider a short British Pound trade
- If market reaction favors selling sterling, short GBP/USD with two separate position
- Set stop at the near-by swing high/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
- Need green, five-minute candle to favor a long GBP/USD trade
- Implement same setup as the bearish British Pound trade, just in reverse
GBP/USD Daily
- GBP/USD remains vulnerable to further losses as the RSI appears to be sliding back into oversold territory.
- Interim Resistance: 1.6000 (50.0% retracement) to 1.6020 pivot
- Interim Support: 1.5540 (61.8% expansion) to 1.5550 (78.6% retracement)
| Period | Data Released | Estimate | Actual | Pips Change (1 Hour post event ) | Pips Change (End of Day post event) |
|---|---|---|---|---|---|
| SEP 2014 | 10/14/2014 8:30 GMT | 1.4% | 1.2% | -49 | -108 |
September 2014 U.K. Consumer Price Index
GBPUSD: 108 pips price movement by GBP - PPI news event :
