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GBP/USD binary signal - UK Public sector net borrowing - 22 Aug 2017

Signal details
Entry Price: 
1.2880
Close Price: 
1.2822
Direction: 
High
Expiry Time: 
20:00 GMT
Result: 
OTM
How we trade
5/5 of 3 ratings

The UK's Office for National Statistics (ONS) will be published the monthly public sector net borrowing data. The report is scheduled to be released at 08:30 GMT today. The public sector net borrowing data is a report that shows the difference in the value of spending and income in the public sector. This also includes central and local government authorities.

The public sector borrowing report will cover the period of July. Forecasts show that borrowing increased just 0.4 billion during the month. This is vastly lower than the 6.3 billion GBP increase in public borrowing in the month of June. On a month over month basis, public borrowing in the UK rose at a pace of 1.9 billion British pounds, rising to 22.8 billion for the current financial year.

The UK's Office for Budget Responsibility (OBR) had forecast that public sector borrowing would increase to 58.3 billion British pounds by the end of the financial year in March 2018.

The public sector borrowing also sheds light on the budget deficit as well. In June, this deficit grew by nearly 50% compared to the same month, the year before. Spending on debt interest payments alone rose to 33% on an annual basis. The higher than expected borrowing has put pressure on the UK's finances as a result.

Based on the above, today's binary options trading recommendation is GBPUSD. A decline in the public sector borrowing will be seen as positive data for the cable. The currency pair has managed to remain supported above the technical support level identified at 1.250. We expect to see further upside in prices.

Therefore, we are purchasing daily CALL options in GBPUSD for a 20:00 GMT expiry time. We look for a near term decline to 1.2880 to purchase the CALL options. In the near term, GBPUSD is expected to maintain the gains as the currency pair could be seen rising to test the next resistance level at 1.3000, thus likely to close higher on the day.

binary options signal gbpusd 22 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.