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GBP/USD trading - G-20 summit - 07 Jul 2017

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GBP/USD trading chart 7 July 2017
5/5 of 6 ratings

US data disappointed yesterday

In the US, ADP non-farm payrolls showed 158K jobs, the forecast was 184K. Initial jobless claims showed 248K against the forecast of 243K. In May the US trade balance was slightly worse than forecast, but with positive dynamics. Finally, we don’t think that this will significantly affect today's data.

Today, fundamental data are more important than statistical

The non-farm payrolls are projected at 175K vs. 138K in May. But today and tomorrow the G-20 summit takes place in Hamburg. Attention to the event is great - the relationship between Russia and the US, the US and its allies with North Korea, the US, and China, the US and Syria will be considered.

At the summit, Mark Carney will speak on financial stability today, but the text of the speech won’t be published.

In the UK, May the industrial production may grow by 0.4%, the construction output is expected to grow by 0.6%. The commodity trade balance is projected with a slight deterioration: -10.8 billion pounds against -10.4 billion in April.

So, the G20 meetings don’t always have a significant impact on the financial markets, but the meeting in Hamburg is special, and against this background, there may be speculative moves in both directions. However, we are waiting for the strengthening of the US dollar.

How we trade binary?

The break of the upper border 1.2974 of the channel, in which GBP/USD spent most of the week, will lead to the activation of Call option’s buyers with the update at 1.3018. If the pair falls in the first half of the day to support 1.2925, we recommend buying Call options only after an unsuccessful attempt to consolidate below.

Sellers will try to form a false breakout in the area of 1.2974, and a return below this level will be a good signal for the purchase of put options.

We are looking to purchase Call binary options with 20:00 GMT expiry if a one hour candle closes above the 1.2974 level. If our first target is not reached and the price can’t break the level at 1.2974 and goes below, the first scenario would be invalidated. We would buy Put options in this case.

Asset: GBP/USD
Target prices: 1.2974 (Call) or 1.2967 (Put)
Expiry time: 20:00 GMT

Comments

Jannik P.'s picture

Target Price: 1.2925
Direction: Put
Close Price: 1.2884
Expiry Time: 20:00 GMT
Result: ITM

Jannik P.

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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