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 Forex Analysis
20

Forex News Spike Trading Signal for October 20th 2011 - UK Retail Sales


4:30 UK Retail Sales (Ex Auto Fuel) m/m (+0.2% expected, -0.1% prior, -0.3% to +0.4% range)
or UK Retail Sales (w/ Auto Fuel) m/m (0.0% expected, -0.2% prior, -0.3% to +0.4% range)

Affliated Reports:
UK Retail Sales (Ex Auto Fuel) y/y (+0.6% expected, -0.1% prior, -0.5% to +0.9% range)
UK Retail Sales (w/ Auto Fuel) y/y (+0.6% expected, 0.0% prior, -0.3% to +1.1% range)

Last month a +0.2 on ex-Gas and +0.1 w/Gas caused a small rally of about 25 pips over 9-10 minutes.
In August, there was only a small deviation on these figures, with the w/Gas m/m deviating -0.2 and
the exGas m/m just deviating -0.1. Price just dipped briefly about 20 pips but then reversed back
above the last swing high in the 20 minutes following the release, but headed lower over the top of
the hour. Really just chop and not much to trade. A similar situation to the July release, when
the w/Gas m/m came out flat while the exGas m/m deviated by +0.3. Price spike about 20 pips but
turned back down 5 minutes after the release, eventually going below pre-release price. In June,
this one came out lower, with -1.0 on ex/Gas and -0.8 on the w/Gas m/m figure, and cable shot down
about 50-55 pips in the 1st minute, retracing 50% or so and more like consolidating for about half
an hour before selling off another 60 pips or so over 3 hours.In May a more modest deviation of
+0.4 ex/Gas and +0.3 w/Gas caused a 30-35 pip spike in the 1st minute, but pulled back to pre-release
over half an hour, before again moving higher and breaking the spike highs by about 15 pips. Not a
bad reaction for such a small deviation, but the fact that price retraced all the way to pre-release
shows that there was less strength in the move than what we got from a larger deviation. The +0.6
ex/Gas and +0.7 w/Gas deviations seen in April, produced a good initial spike and virtually no
retracement and plenty of continuation of the move. You can set triggers on either of the 2 m/m
figures or use the Elite weapon to trade them both or put more lots on if both hit triggers.


-If either comes out deviating +0.6% or more above expected reading,
GBP/USD should rally sharply for at least 40 pips
-If either comes out deviating -0.6% or less below expected reading,
GBP/USD should fall sharply for at least 40 pips

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Categories: GBPUSD

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