Forex pairs respond sensibly to economic news. So it’s a good recommendation to write down the upcoming events for each trading day – a very good source that I use to get the dates of the events for the next days is the Forex Factory Calendar.

If you hold positions for a longer period, then it’s not as important as when you are daytrading and hold positions only for a short time. In that case you must keep track of the events for this day and stop trading before and after bigger events – or at least be aware of bigger price movements that could occur, and react on it.

Here’s an example of GBPUSD from today. I was waiting for a break of the double bottom, and then some news came in and price rallied upwards.

Though the underlying trend is still bearish, such an outbreak of 170 pips can be harmfull to your trading balance. Catching such a big move can be very profitable, though…