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GBP/USD Signal - UK Housing Stimulus - 23 Aug 2016

Signal details
Entry Price: 
1.3155
Close Price: 
No Trade
Direction: 
High
Expiry Time: 
20:00 GMT
How we trade
5/5 of 4 ratings

Since the beginning of the day the GBP/USD is marking significant growth and it is at present trading around the 1.3190 area. Having in mind that yesterday’s highs were in the 1.3155 level, the increase is somewhat substantial. The reason for the rally is the publication of an article yesterday that the UK government could be preparing a stimulus package for housing companies.

This data led to speculators cutting their short positions on the GBP/USD which is resulting in a sharp rally for the pair. Considering all that the utmost suitable thing to do is to assess a target price of 1.3155 due to the fact that perhaps in this zone there would be a lot of buyer’s interest (because of yesterday’s high there). We can conclude, that today we would be buying daily calls at the price of 1.3155 heading into the 20:00 GMT expiration.

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.