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GBP/USD Signal - UK Retail Sales - 18 Aug 2016

Signal details
Entry Price: 
1.3070
Close Price: 
No Trade
Direction: 
Low
Expiry Time: 
20:00 GMT
How we trade
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The GBPUSD pair is changing the downfall pattern that we have been observing during the past couple of days and rallies towards higher levels (right now its in the 1.3070 area). The most recent reason for that is the release of the minutes from the latest meeting of the Federal Reserve that happened in July. We are expecting a release of retail sales data from the UK to be weak enough to warrant a further decline in the pair.

Having this in mind we can define an appropriate target price of 1.3070. The fundamentals above are are not the only reasons for this decision. The most graphic one is that the GBP/USD has tested the 1.3070-80 multiple of times and after a double test to the upside the pound still failed to break above. From all these factors we can conclude that today we will be buying daily puts at the price of 1.3070 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.