Forex Strategy Video: GBPUSD Fundamentals for Technical Traders
• There are two general types of analysis - fundamentals and technicals - and retail traders prefer techs
• Fundamentals can encompass a vast array of topics and measurements but event risk and themes are key
• Known event risk can help stoke volatility and high level themes can establish trends
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Technicals are the preferred analysis type for most retail traders. But a basic appreciation of fundamentals can better tell us when breakouts are coming or whether trends will develop. For those that want to avoid going too far down the fundamental rode, there are two key elements for this type of analysis: known event risk and dominant themes. GBPUSD offers a great illustration of fundamentals in action. A technical channel break has been curbed by fundamentals, but upcoming event risk can significantly change its volatility and trend profile. We discuss what fundamentals and how to incorporate them for those that consider themeselves purely technical traders using GBPUSD, EURUSD and other pairs in today's Strategy Video.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.