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Option 24

UK MPC minutes August 17 2011

The Bank of England in Threadneedle Street, Lo...

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We have the UK MPC Meeting Minutes coming out today at 09:30 UK time (04:30 EST).
The Forecast is  2-0-7, that is 2 for hike, 0 for cut and 7 for as is. If 3 or more voted for a hike, will be looking to go long GBP, but watch out for volatility and enter using the scalping method (1 minute). If the price flies away DO NOT enter as you may be buying a top. Watch for a retrace back to 10ema or the Bollinger bands as per plan.

If we get 2 votes for quantitive easing will look to sell the GBP, once again same scalping rules apply.

Never jump in when the price is at an extreme, wait for the price to come back to you and then enter, that way you can make 2-3 attempts to get in with tine (2-3 pips) stops. When you scalp your way in you can close in parts and let one of the parts run into the swing, should the Gods of trading smile on you :)

On the whole the bank of England has been pretty bearish on the economy and has the problem of high CPI and low interest rates. Something will have to give at some point and more QE looks more likely at the moment. Raising rates will have an adverse affect on an already slowing economy, coupled with the aggressive increase in VAT just recently. Just a few things to bear in mind, should you become too bullish or bearish.

Good Trading

Mark


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