My economic-fundamental predictions for the UK CPI and PPI coming up are . So, I am looking to buy the GBP for at least 20 pips or more, what ever show up on the charts. It could unfold into something greater. I don't know, but guess what? If you are LONG GBP from the bottom, then you can have more confidence to stay in with my predictions. I am also looking to go long again.
"A currency speculator makes money by forcing a country to face realities it would rather not face." - A FUNDAMENTAL CURRENCY TRADER
For two months, I have been staying on the sidelines in predicting the UK data. Last week I started again. There are still some missing elements. As I was doing my research, I notice in looking at the UK economy that the uncertainty in the economy has dissipated a little bit, but it is still there in the consumer. It SEEMS like UK is recovering, even from the Brexit. The weak pound that we traders help "donated" to in early August with success helped prices fall, which actually helped the economy. haha... So, we traders did a good job knocking down the pound.
Now, the CPI and PPI come out. What do I expect? I predict that it will be good, possibly better than expected. This prediction is based on a lack of a key data, but I am going with it for now, even though this data has been challenging. I'll take the risk.
RISK to TRADE: The US Dollar comes back into play on Thursday and sends everything else down. For now, buying the pound!
Fundamental economic indicators: Yes, as a trader, align yourself with REALITY, which is reflected in the chart. you need to be aware and understand how to use economic indicators to your advantage, or else, you are just a professional gambler. Read Abe Cofnas' Forex book: https://www.amazon.com/Forex-Trading-Course-Self-Study-Successful/dp/1118998650/ref%3Dsr_1_1?ie=UTF8&qid=1474057013&sr=8-1&keywords=abe+cofnas