The trade: Short GBP/USD & Long AUD/USD .
A nice correlation trade is setting up between GBP/USD & AUD/USD . The spread in the correlation is currently 450 Pips, over the past year the max spread has been approximately 500 Pips.
We will be taking 1/2 our intended position size, if the spread continues to widen we will slowly add to our position. There is a good chance we see that happen over the next few days as the US, Great Britain & Australia all have economic news scheduled for release. If our timing happens to be accurate and the spread begins to narrow before that data is released we will book our profit.
The following idea is in coordination with the Unique Forex Forecasting Algorithm. Unlike traditional indicators which are lagging, the Unique Forex Forecasting Algorithm is leading, giving you a price forecast with a prediction performance odds. You can learn more at http://www.forextrading.unique4x.com