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GBP/USD binary signal - BoE Member speeches - 12 Feb 2018

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Signal details
Entry Price: 
1.3897
Close Price: 
No Trade
Direction: 
Low
Expiry Time: 
21:00 GMT
How we trade
5/5 of 4 ratings

The economic calendar is light today with no major economic events that could impact the markets. Amid a quiet day, the speeches from the Bank of England policy makers, McCafferty and Vlieghe will stand out which could influence the British pound to a certain extent.

The BoE member speeches comes just a few days after the Bank of England left interest rates unchanged by a unanimous vote. While the monetary policy was unchanged, the central bank signaled that interest rates could start to rise sooner than what it had initially anticipated.

This was seen to be a hawkish signal from the Bank of England. The British pound initially strengthened on the news but the currency soon weakened last week. We expect that in the near term, the British pound could once again strengthen but only limited in scope.

Later this week the monthly inflation figures from the UK will be released and this is likely to play an important role in shaping the interest rate expectations from the Bank of England in the upcoming monetary policy meetings.

Based on the above, today's binary options signal is GBPUSD. The currency pair enjoyed a strong rally earlier on. Most of the gains came due to a weaker U.S. dollar and a somewhat better than expected economic data from the UK.

Last week, GBPUSD broke past the support level at 1.3855 to briefly extend the declines to a three week low before recovering by the day's close. We expect to see this retracement push GBPUSD to the upside. But the gains are likely to be limited.

Therefore, we are looking to purchase daily PUT options at 1.3897 in GBPUSD for a 21:00 GMT expiry time. The currency pair is expected to retrace to this level before reversing and closing lower on the day.

binary options signal gbpusd 12 feb 2018

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.