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GBP/JPY binary signal - UK Manufacturing Production - 10 Aug 2017

Signal details
Entry Price: 
142.75
Close Price: 
141.70
Direction: 
High
Expiry Time: 
20:00 GMT
Result: 
OTM
How we trade
4.7/5 of 7 ratings

The manufacturing production data from the UK is expected to be released today at 08:30 GMT by the UK's Office for National Statistics (ONS). According to the economists polled, the expectations are for the UK's manufacturing production to have stagnated in the month of July.

This follows a 0.2% decline in June. The UK's construction output is expected to rise 1.4% on the month according to the median estimates and this is expected to reverse the 1.2% declines posted previously. The industrial production numbers are expected to rise 0.1% on the month, reversing the 0.1% decline previously.

Combined, the median estimates point to a modest recovery overall after the respective industries showed a modest decline in the month of June. Still, there is scope for the weakness in the sectors to continue which exposes the downside risks for the UK's economy.

Most of the declines came on account of a decline in the manufacturing activity as well as economic activity. But most of the declines were attributed to the highly volatile pharmaceutical industry. Besides the pharmacy industry, transportation also posted a drag on the manufacturing sector.

The UK's construction sector could also see a slowdown with the economy expected to grow just under 0.5%. Furthermore, the wage squeeze experienced by UK households could also contribute to reduced demand for housing which could indirectly affect the construction activity.

Based on the above data, today's binary trading is GBPJPY. The currency pair has been on a decline in the past few days but price action could see a near term retracement.

The technical support at 142.28 has been tested and we could expect to see price move to the upside. Therefore, we trade daily CALL options in GBPJPY at 142.75 for a 20:00 GMT expiry time.

We expect to see GBPJPY maintain some of the gains following a decline to 142.75 following which the currency pair could close higher on the day.

binary options signal 10 Aug 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.