Here are the key factors to keep in mind today for British Pound trades:

• BBA Loans for House Purchases: An increase in BBA Loans for House Purchases to 36,000 is expected for January. December showed a level of 35,667. The UK housing market is important to the UK economy and a strong performance gives a boost to the British Pound. Should today’s report show a level above 36,000 forex traders may add to their long positions in the British currency.
• Bank of England Governor Carney and Deputy Governors Speak at Research Conference: This event may not directly impact the British Pound, but when central bank heads give a speech there could be comments on monetary policy and depending on the questions asked even a lack of response can give an insight. Forex traders should be careful with their British Pound trades until after the speeches.

Here are the key factors to keep in mind today for US Dollar trades:

• New Home Sales: Economists are forecasting a contraction of 2.3% in January monthly which would total 470,000 new homes sold in the first month of 2015. This is a turnaround from the 11.6% surge reported in December where 481,000 new homes were sold. The US Dollar could weaken if the contraction is bigger than expected as the housing market in the US has struggled over the past few months to produce the data which supports a stronger US Dollar.
• Federal Reserve Chairwoman Yellen testifies to Financial Services Committee: Congress has called on the head of the Federal Reserve to testify about her job. Forex traders should closely follow her testimony as she is expected to defend her actions at the head of the US Fed. Many are not pleased with here monetary policy and she may be forced to explain her course of action as well as potential future changes which will impact the US Dollar.

Should price action for the GBPUSD remain inside, or breakdown below, the 1.5450 to 1.5500 zone the following trade set-up is recommended:

• Timeframe: H1
• Recommendation: Short Position
• Entry Level: Short Position @ 1.5470
• Take Profit Zone: 1.5320 – 1.5360
• Stop Loss Level: 1.5600

Should price action for the GBPUSD breakout above 1.5500 the following trade set-up is recommended:

• Timeframe: H1
• Recommendation: Long Position
• Entry Level: Long Position @ 1.5530
• Take Profit Zone: 1.5600 – 1.5650
• Stop Loss Level: 1.5450

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