Different strokes for different folks I guess but I have a hedged position in this pair which is skewed to the long side ie I am longer twice the amount I am short.
As I mentioned earlier this is the pair that stands out to me as the pair ‘most likely’ to give some sort of satisfaction on the UK data.
If the news is good for sterling the pair will go down and I am looking to take 40-50 points and would also buy a little more to improve the average of my long position as any bounce in sterling will be met by sellers.
If the news is bad I have a 20 pip stop which will be placed on the short side before the figures and will run the long which is the direction anyway ! make sense ?
It’s not a usual play for me intra-day but I thought I would share it (nb I do take this sort of strategy on medium term stuff occasionally).
I only recommend trying this with a tiny position and very strict risk management if the idea is new to you.
EDIT: apologies there may be many of you who may not have heard of an OCO – it’s a ‘one cancels the other’ order that you can set with your broker; say we take this example and the market before the data is 0.8735, you might place an OCO to sell at 0.8715 and put a stop at 20 pips ( 0.8735) and a profit/limit order at 0.8675 (40 pips) and the other side of the OCO would be to buy at 0.8750 to get a long position and put similar stop and profit targets on it.
Another option would be to just buy a dip on good news !
