At 4:30 a.m. New York time we will have UK CPI. The most important number to watch is the headline number which is actually expected to come out at either 1.9 or 2.0%. If the UK CPI y/y reads 2.1% or higher, I think GBP/USD may possibly go up by 50 pips or more in the first hour of the report. On the other hand, if the CPI reads at 1.8% or below, I think GBP/USD may possibly go down by 50 pips or more in the first hour of the report.
* Report: UK CPI y/y
* Buy on GBP/USD if the number will be 2.1% or higher
* Sell on GBP/USD if the number will be 1.8% or less
* If the trigger is hit, expect 50 pips or more in the first hour of the report.
Be aware of strange price actions at 5 a.m. on EUR/USD because of German ZEW but I would not trade it as I do not think it is worthy to take a risk. Similarly, at 3 p.m. there may be some price actions because of U.S. Pending Home Sales, and later on on New Zealand PPI Input. I would not trade these either.