Data trading for GBP/USD

Data trading is perceived as risky by most traders and should be avoided at all costs. However if one catches the trend early, an opportunity for a small gain is possible.

As seen in the picture above, the M1 graph of GBP/USD shows 3 consecutive red candles right after the data for UK`s mortgage approvals was deemed below estimates and lower than the figure last month.

Of course, on a longer time scale, other factors would influence the direction of this currency pair.