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GBP/USD Signal - UK Manufacturing - 09 Aug 2016

Signal details
Entry Price: 
1.3020
Close Price: 
1.3003
Direction: 
Low
Expiry Time: 
20:00 GMT
Result: 
ITM
How we trade
3.7/5 of 3 ratings

The price of the GBP/USD pair has been going down significantly since the beginning of August. Not only because of the affairs connected to Brexit but because of the notably smaller manufacturing and industrial production in the UK released today.

Both industries dominate a big part of total GDP, therefore low production rates (that lead to moderate reading) can be seen as bearish. That is why, even though the market is currently ignoring the data we are expecting heavy sellers into the 1.3020 area (which is also our target price).

The pair has broken through yesterday’s key level in the 1.3050-70 area and is currently trading at 1.2965 which is the lowest price for quite some time. The 1.3020 level which was support yesterday has become key resistance for today and this is where we will be buying daily puts for the daily expiration at 20:00 GMT.

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.