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GBP/USD trading - Brexit procedure announce - 29 Mar 2017

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GBP/USD trading chart 29 Mar 2017
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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.

Asset: GBP/USD
Direction: Call
Target price: 1.2473
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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