Yesterday, the British pound lost about 107 points
Today, the “Brexit” procedure will be officially announced, and this will be an important psychological "bearish" factor for investors. Also, yesterday's better-than-expected US data put pressure on the pair GBP/USD.
The US data were better than forecasts
In February, the goods trade balance amounted to -64.8 billion against the forecast of -66.6 billion. The wholesale inventories increased by 0.4%, against the expectation of 0.2%. The Richmond manufacturing index grew from 17 to 22 in March, the forecast was 16. The consumer confidence index from the Conference Board also jumped from 116.1 to 125.6.
Today, the US will publish data on pending home sales where the investors expect the growth at 2.3%. In the UK, the net lending to individuals is expected to grow from 4.8 billion to 4.9 billion. This factor won’t attract attention on the back of the “Brexit” announce. Well, the trend reversal has taken place, and now we are waiting for the GBP/USD at 1.2200.
How we trade binary?
We would buy Call options if the price goes above the 1.2473 level. This scenario would be invalidated if the pair goes below 1.2380, in which case we would go for Put options with the end of the expiry.
Target price: 1.2473
Expiry time: 20:00 GMT