Pick of the Day: GBP/USD

We have a big week for the USD starting with tomorrow morning at 8:30 am EST. US Producer Price Index and Retail Sales will be released tomorrow morning, along with comments from Fed Chairman Bernanke.

It’s been all about inflation lately for the Fed, and the numbers we will see tomorrow and Wednesday may help or hurt the possibility of an interest rate hike at the end of June. Any surprise number or a change of heart from Big Ben should cause quite a stir in the markets tomorrow morning, and we’ll see if we can take advantage of that. Now, we have UK CPI tomorrow morning (4:30 am EST) before the reports, so I will wait until 7:00 am EST before I enter my orders.

If the morning UK report has caused the pair to move out of the range of entry orders, then no orders will be placed. We may possibly see quick movement after the release, so I will set tight stops and profit targets.

Long GBP/USD at 1.8480, stop at 1.8450, pt1 at 1.8495, pt2 at 1.8510

Or

Short GBP/USD at 1.8369, stop at 1.8405, pt1 at 1.8359, pt2 at 1.8340

Good luck and good trading!