The Cable rose after the rumors about the resignation of Mark Carney ahead of schedule.
In September the volume of mortgage approvals rose from 61K to 63K in the UK. The net lending to individuals remained at 4.7 billion pounds against the forecast of 4.6 billion.
In the US, the September consumer income/spending also reached the expected levels: income increased by 0.3% and spending by 0.5%.
Today, the US statistics is promising growth. The ISM Manufacturing PMI is expected to grow from 51.5 to 51.8. The Manufacturing PMI from Markit is expected to grow from 53.2 to 53.3. The construction spending is expected to grow from -0.7% to 0.5%. The seriously falling oil price is also the factor of the US dollar strengthening.
The Cable doesn’t have domestic reasons for the decline to 1.2135. We expect consolidation of the pair GBP/USD in the range of 1.2210- 1.2270.
How to trade binary
The pair is in a downward correction of the structure. The short-term downward movement is possible in the range of 1.2202 - 1.2098. The short-term upward movement is expected in the range of 1.2372 - 1.2446. We would buy Put options if the pair falls below 1.2200.
Target price: 1.2200
Expiry time: 21:00 GMT