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GBP/USD trading - ADP employment change - 01 June 2017

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GBP/USD trading chart 1 June 2017
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Yesterday the pair GBP/USD showed a sharp increase

The probability of the rate increase by the Fed at the meeting on June 14 rose to 85%. In the UK the number of mortgage approvals declined from 66.04K to 64.64K in April. The recent surveys show that the Conservative Party can lose 20 seats in parliament from those that it has now.

Today, the US will publish important data

First, it should be noted that the head of the Federal Reserve Bank of San Francisco, John Williams, who spoke in Seoul this morning, confirmed that he expects three rate hikes this year.

The non-farm employment change from ADP could be 185K in May vs. 177K in April. The construction spending may increase by 0.5% in April. The ISM Manufacturing employment is expected at 52.8. May Manufacturing PMI is projected with a slight decrease - 54.5 against 54.8 before. In recent days, the British pound reacts sharply to the surveys, we don’t exclude the possibility of growth to 1.2965, however, we still expect the pair GBP/USD to decline below 1.2804.

How we trade binary?

We would buy Put binary options with 20:00 GMT expiry if a one hour candle closes below the 1.2860 level. If our first target is not reached and the price goes above 1.2910, the first scenario would be invalidated. We would buy Call options if a one hour candle closes above the 1.2910 level.

Asset: GBP/USD
Direction: Put
Target price: 1.2860
Expiry time: 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.

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