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Tag Archives: GBP/CHF
Forex traders can use GBP news drivers on the economic calendar to locate strong price movements. Traders can capture these movements and profit from them with the techniques we will demonstrate. This article will show any trader how to track these volatile GBP (British Pound) pairs and we will also show you a great indicator set for trading these pairs.
Locating GBP News Drivers
Forex traders should become familiar with the world economic news calendar. The calendar can be customized to show GBP news events or news events for any other currency they like. Some examples of scheduled GBP news announcements that create volatility in the GBP pairs are: Consumer Price Index, Core Consumer Price Index, Bank Of England Interest Rate Decisions, BOE Asset Purchase Target, Manufacturing PMI, and many others. These economic news drivers are scheduled and traders can watch the market after these news announcements for trading opportunities to buy or sell the GBP pairs.
If you need a world economic news calendar to track GBP news events we have one on our website. These handy calendars will also provide you with scheduled news drivers for other important and most actively traded currencies. Now that you know how to look for scheduled GBP news, and what time these economic news announcements will be. The next thing you need to do is determine how to enter trades on the GBP pairs when they move up or down after the news.
GBP Pairs And Volatility
We trade 28 pairs at Forexearlywarning, and 7 out of the 28 pairs are GBP pairs. These pairs are all quite volatile. The EUR/GBP is the low volatility pair in the group, and the GBP/NZD is hyper volatile. If all 7 GBP pairs moved 1% in one day, the total movement on all 7 GBP pairs would be around 1000 pips on the day this article was written, and it used to be much higher before the Brexit vote. Some forex traders almost cannot believe it, but this type of volatility makes the GBP pairs group the most volatile group of most commonly traded pairs. The opportunity is here to make a lot of pips and the volatility makes it possible.
Example GBP News Trade and Signal System
On April 4, 2016, the GBP (British Pound) had a scheduled news driver on the economic calendar, it was the GBP Manufacturing PMI news announcement. The net result for traders was that the GBP weakness dominated most of the market movement after the news announcement. The GBP was weak on all pairs on this day and pairs like the GBP/JPY, GBP/CHF and GBP/AUD all sold off hard. The trading signal you see below is from The Forex Heatmap®, which provides live buy and sell signals for the GBP pairs and 7 other currencies. It provides live trading signals during forex market hours and after all forex news drivers across 28 pairs. As you can see the GBP was weak on this day after the GBP news announcements and this drove strong price movement.
Also, an example chart of the GBP/CHF sell off is also shown, you can see this pair alone sold off 175 pips. The GBP pairs as a whole moved much more than 1000 pips in one trading session on this day.
If you combine the trend, GBP news economic drivers, and The Forex Heatmap®, you can start to build a powerful trading system. On this day the GBP/JPY was in a long term downtrend and it also dropped on the GBP weakness. We estimated on his day that the GBP/JPY should continue down to at least the 158.50 support level on the H4 time frame, or possibly much lower. The GBP/AUD broke out to the downside and this pair resumed the downtrend on the W1 time frame, withthe next major support is at 1.8350, so additional pip potential is available on the GBP pairs. The live heatmap signals will give you a profitable trade entry, but if you are trading with the major trends and breakouts you can start riding the trends lower on these pairs and add to your pip totals.
More Volatility and Strong Price Movement
The GBP pairs are naturally more volatile, but less volatile pairs can become much more volatile after scheduled news divers, or other unexpected worldwide news events. Pairs that are less volatile become much more volatile after news events, as logn as one currency is consistently strong and the other currency in the pair is consistently weak. We track 8 currencies including the GBP pairs with our indicators. Following all 28 pairs and 8 currencies is fairly easy, and when combined with our alert systems and the economic calendar, you will always be in the know when currencies are moving.
Today in the forex market the GBP (British Pound) was weak and drove a lot of price movement for traders. There were sell signals on the GBP/CHF and GBP/NZD on The Forex Heatmap®, and both of these pairs sold off. The GBP/CHF is inside of some historical support levels, so we would scale out lots on any sell positions. The GBP/NZD is in a strong downtrend on the larger time frames and should continue much lower. The live signal system you see below is The Forex Heatmap®, our live entry management system for 28 pairs, including all 7 GBP pairs shown below in the image.
The GBP/CHF trading plan is presented here. This pair is trending higher on the major time frames, like the MN time frame in the image below. Traders can set a price alert at the 1.5540 resistance breakout point, then verify the buy with The Forex Heatmap®. This pair has substantial upside on the MN time frame past the 1.5540 resistance area. This trading plan was prepared using multiple time frame analysis by individual currency. This is the analytical technique we use every day at Forexearlywarning. Traders can check our website for more information on how to prepare a forex trading plan.
The GBP/CHF trend analysis is shown below. On an overall basis this pair is cycling in fairly wide ranges. Set a resistance breakout alarm at 1.4900, above there it has around 400 pips of upside potential back up to the 1.5300 resistance area. When the alert hits check The Forex Heatmap® for buy entry verification. These resistance areas are marked in red on the analysis chart below. The GBP/CHF currency pair was analyzed with multiple time frame analysis by individual currency, this analytical method works for all 28 currency pairs we follow at Forexearlywarning.
Today in forex trading the CHF (Swiss Franc) signaled weakness across all of the pairs in the group on The Forex Heatmap®. This drove very strong price movement on the pairs in this group. The GBP (British Pound) was also strong so the GBP/CHF had a very strong move to the upside. This pair could now continue up to the 1.4950 resistance area. Pairs like the USD/CHF also moved up and this pair could continue up to the 0.9800 resistance area. The live signal system you see below is The Forex Heatmap®, it works on 28 pairs and 8 currency groups.
Today in the forex market the GBP (British Pound) strength was signaled on all pairs and this is shown below on The Forex Heatmap®. There was also EUR (Euro) weakness present, causing price movement and opportunities for traders. This caused the EUR/GBP to dropstrong to the downside, this pair should continue down to retest the 0.7050 support area as the D1 trend is forming pointing down. We will also look to the GBP/CHF pair to set more trading plans, this pair has strong upside pip potential if the D1 trend fully forms going up. The trading signals you see below are from The Forex Heatmap®, our real time trade entry management tool, it provides signals for 28 pairs.
Today in forex trading the CHF (Swiss Franc) strength in the market caused price movement on all pairs in the group. There was also some GBP (British Pound) weakness in the market. This caused the GBP/CHF to move strong to the downside. This pair is trending down on the D1 time frame. This pair has minor support levels below the current pricing so it would be best to scale out some lots on any sell entries. The live trading signals you see below are from The Forex Heatmap® , it works on 28 currency pairs.
Today in currency trading the Swiss Franc (CHF) signaled strength on all pairs. There was also some GBP and CAD weakness in the market. This drove the CAD/CHF and GBP/CHF strongly downward for currency traders. We would scale out lots and manage any profit on both pairs as the larger trends are not fully established on the CHF pairs at this time. The trading signals you see below are from The Forex Heatmap®, which gives live buy and sell signals across 28 currency pairs and eight major currency groups.
Today in forex trading the GBP (British Pound) strength was signaled on The Forex Heatmap®. This caused price strong movement on this group of pairs. The GBP/CHF broke to the upside and has no resistance past the current pricing, it is trending higher. The EUR/GBP broke support and should continue lower in it’s downtrend. The GBP/AUD moved strong to the upside but is still inside of some resistance layers so we would scale out lots on this buy trade. The live trading signals you see below for the GBP pairs is The Forex Heatmap®, it also provides signals for seven other currency groups.
Today in the forex trading the British Pound (GBP) was strong on all pairs. There was also some Euro (EUR) weakness in the market. This caused the EUR/GBP to drop. This pair is headed into support levels at the 0.7825 area. We would scale out lots or exit this trade. The GBP/CHF moved inversely to the EUR/GBP and rose strong to the upside. This pair is approaching resistance levels at 1.5350-1.5400 area. We would scale out lots at the current price levels on this pair. The currency strength indicator you see below is The Forex Heatmap®, which provides live trading alerts for 28 pairs.