Forex Signal for August 28th

Let's first review what happened on Wednesday.

It came out higher than expected by 1.4, from -0.7% expected to 0.7%,
and the headline came out higher as well. In the first minute it moved
by only 10 pips but it was a beginning of the up trend and eventually
USD/JPY moved by 80 pips. It seems it worked better so maybe next time
I will focus more on it.

Let's talk about Thursday.

1. Thursday, August 28th, 2008 (2:00 a.m. New York Time) UK
At 2:00 a.m. we will have UK Nationwide House Prices m/m which is expected
to come out at -1.5%. If it comes out at -2.0% or lower (more negative),
I would sell GBP/USD and expect 30 pips move. On the other hand, if it
comes out at -1.0% or less negative, I would buy GBP/USD and expect 30 pips
move as well.

2. Thursday, August 28th, 2008 (8:30 a.m. New York Time) USA
At 8:30 a.m. we will have U.S. 2nd Q GDP Annualized Prelim. Rev. which is
expected to come out at 2.7%. Because this is annualized, I would use 0.4
trigger here. If it comes out at 2.3% or lower, I would sell USD/JPY and
look for 40 pips price action. On the other hand, if it comes out at 3.1%
or higher, I would buy USD/JPY and expect 40 pips move as well. If we get
a signal, make sure there is no significant conflict with U.S. Initial
obless Claims. Remember, higher IJC is bad for the U.S. dollar (selling
pressure on USD/JPY) and lower IJC is good for the U.S. dollar (buying
pressure on USD/JPY). Also, be careful of a possible whipsaw/reversal
effect as this was doing that before.

That would be all for Thursday.