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GBP/USD binary signal - UK Construction PMI - 04 Jun 2018

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Signal details
Entry Price: 
1.3347
Close Price: 
1.3314
Direction: 
High
Expiry Time: 
21:00 GMT
Result: 
OTM
How we trade
5/5 of 6 ratings

The monthly PMI indicators for the UK will be released by Markit today at 0930 GMT. Today's PMI report will be covering the construction sector. Economists polled forecast that construction activity as measured by the construction PMI will rise to 52.9. This would mark a somewhat positive outlook on the sector which saw activity fall to 52.5 in April.

If actual data matches estimates, it would also mark a second month of rebound in activity in the sector. The UK's construction sector was seen hovering near the 50-level on the index and briefly slipped to 47.0 in March.

However, since April, activity was seen rebounding strongly. This is consistent with the overall view that the UK's economy could be seen strengthening albeit moderately in the second quarter. The UK's first quarter GDP was confirmed at 0.1% on a quarterly basis.

However, economy watchers maintained that growth could return by the second quarter. Despite a rebound, the second quarter still remains weak with construction activity easing in the first few months of the year.

An increase in activity could mark a somewhat better view on the overall GDP growth of the region. Today's binary trading signal is GBPUSD. The currency pair has been hovering near the lows of 1.3300 level over the past week. But the flat price action indicated that a bottom was taking shape.

Therefore, we are looking for daily CALL options at 1.3347 for a 21:00 GMT expiry time. With the resistance level near 1.3310 – 1.3292 being cleared, we expect to see GBPUSD closing higher on the day.

binary trading signal gbpusd 04 jun 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.