For tonight’s pick, we’re gonna hop on this wild ride called “Cable” and ride it down as the Greenback has been gaining ground against it as of late. We have a couple of big data reports coming up today with GBP Retail Sales number and US CPI data. Now, the GBP Retail sales number is forecasted to grow at 0.2%, but I think we may see a weaker number, especially with all of the weak data out of the UK recently. Also, US CPI will be released at 8:30 am EST, and with the Fed still concerned about inflation, this report will be closely watched and we may see a strong market reaction if the core CPI number is higher than expected. Going with these ideas and being that GBP/USD has been in a monster downtrend, I think a short play on GBP/USD is a great play for tonight. Here we go:
Short GBP/USD at 1.8875 , stop at 1.8900, pt1 at 1.8850, pt2 at 1.8825
Good luck and good trading!