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GBP/USD Trading - FOMC meeting minutes - 4 Jan 2017

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GBP/USD chart 4 Jan 2017
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Yesterday, the Cable could not resist the new decision on Brexit despite the positive data on the PMI.

The British Manufacturing PMI showed 56.1 against the previous 53.6 and the forecast of 53.3. The United States presented the strong data. The ISM Manufacturing PMI rose from 53.2 to 54.7. The Manufacturing PMI by Markit version showed 54.3 vs. 54.2 previously. The ISM Manufacturing employment increased from 52.3 to 53.1.

Donald Trump's plan to return production to the United States began to work.

Ford Motor Company has reversed its decision to build a new plant in Mexico and has decided to increase production in Michigan. The company's shares increased by 3.79%. Today the US does not publish important news. In the evening we will see the FOMC meeting minutes.

In Britain, the Construction PMI may even show a decrease - the forecast is 52.8 against 52.8 in November. In November, the volume of mortgage approvals is expected at 67.4K against 67.52K. The net volume of lending to individuals is expected unchanged at 4.9 billion pounds. In the current environment, the market may move in a sideways trend until Friday's data on the US labor market.

How to trade binary

During today's Asian session the British pound traded sideways against the dollar. Today, the buyers are concerned to gain a foothold above 1.2251, where they can move to the larger resistance level of 1.2280. The return of the pair GBP/USD below 1.2235 may return to the market of new sellers, which will lead to a further reduction in the area of 1.2221.

We would buy Call options if the pair GBP/USD rises above 1.2280. This scenario would be invalidated if the pair goes below 1.2235, in which case we would go for Put option with the end of the expiry.

Asset: GBP/USD
Direction: Call
Target price: 1.2280
Expiry time: 21:00 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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