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GBP/JPY binary signal - UK Construction - 03 Oct 2017

Signal details
Entry Price: 
150.40
Close Price: 
No Trade
Direction: 
Low
Expiry Time: 
20:00 GMT
How we trade
5/5 of 6 ratings

The UK's Office for National Statistics (ONS) will be releasing the monthly construction PMI numbers for the month of September. The data is scheduled for release at 0830 GMT today. According to the economists polled, the construction sector index is expected to rise 0.1 points to 51.2 for September, up from 51.1 a month ago.

In the previous month, the construction sector was seen declining as the output fell to the weakest levels in nearly a year. The key source of weakness was due to the reduced levels of commercial work. However, there was a rebound in the residential building work. The previous months reported warned that the construction sector in the UK would undergo a soft patch in the coming months.

The construction sector was badly hit since the June 2016 referendum vote in Britain to leave the EU. The economic uncertainty was felt across all sectors with the construction sector being one of the most affected. Even in the second quarter GDP, with the exception of the services sector, both manufacturing and construction were seen contributing to the downward decline in economic activity.

Yesterday, the manufacturing PMI data was released which showed that manufacturing activity in the UK was weaker than expected. The manufacturing activity slipped to 55.9, missing expectations of 56.3 and down from August 56.7.

Based on the above, today's binary options trading signal is GBPJPY. The currency pair has been consolidating near the support level of 150.40 for the past few sessions and broke out below this support level. Therefore we expect that GBPJPY will decline further.

In the short term, we can expect to see a reversal back to 150.40, which is where we expect resistance to be formed. Therefore, we are looking to purchase daily PUT options near 150.40 for a 20:00 GMT expiry time. We expect GBPJPY to retrace to this level before closing lower on the day.

binary options signal gbpjpy 03 Oct 2017

Disclaimer: The article is written for informative purposes only and it is not financial advice. The author does not have any position in the currency pairs mentioned, and no plans to initiate a position. He wrote the article himself and expressed his own opinions. He has no business nor personal relationships with any mentioned government entities or stocks. Readers should not treat any opinion expressed by the author as a specific inducement to make a particular trade or follow a particular strategy, but only as an expression of his opinion.