GBP/USD Hits One Month High and Retreats to Recent Ranges
As we are nearing the end of the week, and a new look at the GBP/USD currency pair is offering us a new trade for Friday provided that some conditions are met. After a set of positive data on Wednesday the British pound has hit an interim high against the U.S. dollar but is currently consolidating below yesterday's close.
After a sharp spike higher to clear some stops above 1.5460, the GBP/USD pair has dropped back slightly, leading to some rethinking by the bears and the bulls alike. The pair has traded in a tight range today after it hit 1.5480 late last night after the Federal Reserve's meeting minutes.
Currently the price is hovering near the lower part of the range, which is to say 1.5415 as of writing. The GBP/USD traded as low as 1.5404 in late London today just after the opening of the New York session. While key levels remained intact we now have some waypoints for this forex pair going forward.
Talking specific binary options that we would like to purchase those undoubtedly are situated around the key levels below 1.5400. In our view the best course of action would be to buy daily puts for tomorrow's late expiry at 21:00 GMT, while keeping an eye on crucial levels which will trigger the trade.
We will be watching closely the price action to see an hourly close below 1.5400 in order to trigger our trade for tomorrow. If that doesn't materialize, we would be watching for a move higher but only if the pair manages to close above 1.5480 on an hurly basis.
For now we see this as very unlikely and the very strong jobless claims data from today should help that view despite the weaker than expected Philadelphia manufacturing survey. Cold weather appears to be affecting the U.S. again this winter, while tomorrow's key number from the U.K. will be retail sales. That said, we expect those to be in line with expectations.